Bitcoin risks a $105k retest after losing key support following Fed rate cut
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where we break down the world of Web3, virtual currencies, and blockchain in straightforward, encouraging ways. Today, we’re diving into Bitcoin’s recent price action after the Federal Reserve’s rate cut on 2025-09-17, including why it might retest lower levels like $105,000 despite some initial gains. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always ready to ask the simple questions that pop into beginners’ minds. John, what’s all this buzz about Bitcoin potentially dropping to $105,000 after a rate cut that’s supposed to be good news?
Basics of Bitcoin Price Movements
John: Great question, Lila. Bitcoin’s price is influenced by supply and demand, global events, and economic policies like interest rate changes from the Federal Reserve. When the Fed cuts rates, it often makes borrowing cheaper, which can boost investments in riskier assets like crypto—think of it like adding fuel to a car’s engine to speed it up.
Lila: Okay, that analogy helps! So, what exactly happened with this rate cut on 2025-09-17?
Background on the Fed Rate Cut
John: In the past, the Federal Reserve has used rate cuts to stimulate the economy, with the last major ones occurring during economic downturns like in 2020. On 2025-09-17, the Fed lowered its benchmark rate by 25 basis points to a range of 4.00%–4.25%, citing softening labor markets and economic uncertainty, according to reports from CoinDesk and CNBC. This was the first cut since December of the previous year.
Lila: And how did Bitcoin react right after that announcement?
John: Initially, Bitcoin surged, climbing above $116,000 shortly after the news, as reported by Bitcoin Magazine. However, the rally was short-lived, with prices pulling back due to profit-taking and broader market caution.
Current Landscape of Bitcoin’s Price
John: As of now, on 2025-09-23, Bitcoin has shown some recovery, regaining levels above $117,000 following the rate cut, with trading volumes soaring as liquidity expectations lifted sentiment, per Crypto.news and Yahoo Finance. Despite this, it lost key support at $115,000 earlier, trading around $112,623 at one point, setting up a potential retest of the $105,500 zone, as analyzed by CryptoSlate.
Lila: Jargon alert—what does “retest of support” mean in plain English?
John: Good catch, Lila. A support level is like a floor price where buyers tend to step in to prevent further drops; retesting it means the price might dip back to check if that floor holds, based on historical patterns we’ve seen in charts from sources like CoinDesk.
Lila: Got it. So, why the mixed reactions—some gains, but also this risk of dropping?
John: Markets are reacting to caveats in the Fed’s decision, with investors lukewarm about rapid further cuts due to persistent inflation and labor market fragility, as noted in Reuters on 2025-09-18. Bitcoin eyed possible upside but failed to sustain a surge, according to Forbes.
Risks and Safeguards in Crypto Trading
John: Investing in Bitcoin comes with volatility risks, especially after events like this rate cut, where short-term pullbacks can happen. For instance, after the initial climb to $116,000, profit-taking triggered a dip, and now there’s caution around macroeconomic uncertainties.
Lila: That sounds scary for beginners. What safeguards can people use?
John: Absolutely, Lila—always prioritize safety. Here are some practical tips:
- Diversify your portfolio to avoid putting all eggs in one basket, like mixing Bitcoin with stablecoins.
- Use trusted exchanges with strong security, and enable two-factor authentication.
- Stay informed via reliable sources like Cointelegraph for real-time updates.
- Set stop-loss orders to automatically sell if prices drop too low, acting as a safety net.
John: (And hey, if you’re wondering about picking the right exchange, that’s where our linked guide comes in handy—no pressure, just helpful!)
Looking Ahead for Bitcoin
John: Looking ahead, analysts from CoinDCX predict Bitcoin could rally to $128,000 by year’s end if sentiment shifts bullish, but short-term bearish pressure lingers with resistance near $117,000. History shows rate cuts can supercharge Bitcoin over 12 months, as per CoinDesk’s 2025-09-15 analysis, potentially leading to upside amid halving supply dynamics.
Lila: So, is this a good time to buy, or should we wait?
John: Remember, Lila, we’re not giving financial advice here—just sharing verified facts. Keep an eye on upcoming Fed meetings and global events for more clarity.
John: Wrapping this up, it’s fascinating how a single Fed decision on 2025-09-17 can ripple through the crypto world, from initial surges to potential retests. Bitcoin’s journey reminds us of the market’s dynamic nature—stay educated and patient. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—that clears up a lot! Key takeaway: Rate cuts can boost crypto, but volatility is part of the game, so always research before diving in.
This article was created using the original article below and verified real-time sources:
- Bitcoin risks a $105k retest after losing key support following Fed rate cut
- BTC Price News: Fed Cuts Interest Rate in ‘Risk Management’ Move as Bitcoin Eyes Possible Upside
- Federal Reserve Cuts Interest Rates By 25 Basis Points; Bitcoin Climbs Above $116,000
- Bitcoin price regains $117K as Fed rate cut lifts sentiment
- Fed rate decision September 2025