Key Notes
- Federal Reserve delivered smaller 25bp charge lower versus market expectations of 50bp discount amid inflation considerations.
- Crypto liquidations totaled $267M in 24 hours with minimal $36M occurring instantly after Fed announcement.
- Quick squeeze potential builds at $118K degree the place $1.8B in positions face liquidation threat above this threshold.
Bitcoin
BTC
$117 520
24h volatility:
1.5%
Market cap:
$2.34 T
Vol. 24h:
$57.97 B
value discovered assist above $115,000 on Wednesday, September 17, as markets absorbed the US Federal Reserve’s newest transfer. The Fed opted to chop charges by 25 foundation factors from 4.50% to 4.25%, a smaller discount than the 50 foundation factors broadly anticipated.
The choice adopted overheated consumer inflation knowledge final week, leaving speculative merchants unsure about US financial coverage path for the approaching quarters.
US Federal Funds Price Traits, 2025 | Supply: TradingEconomics, September 17, 2025
Nevertheless, the Federal Open Market Committee (FOMC) called for caution in its accompanying statement, hinting at draw back dangers from slower job positive aspects and a slight uptick in unemployment charges.
Regardless of this, the committee maintained expectations for added charge cuts totaling 50 foundation factors later in 2025, although timing stays unclear.
Fed Resolution Sparks Restricted Market Liquidations Regardless of Gold Rally Considerations
Earlier within the week, gold’s rally to all-time highs above $3,700 had sparked fears of huge crypto liquidations within the occasion of a disappointing Fed charge resolution. Nevertheless, derivatives market motion suggests restricted draw back affect.
Crypto market liquidations, September 17, 2025 | Supply: Coinglass
According to Coinglass figures, 24-hour complete crypto market liquidations reached $267.44 million, with $178.64 million in longs and $88.81 million in shorts. Notably, solely $36.19 million of these liquidations occurred inside the hour following the Fed’s announcement, suggesting the market absorbed the choice with out panic promoting.
Bitcoin Bulls Maintain Key Assist Whereas Quick Squeeze Potential Builds at $118K
Liquidation maps present additional insights into Bitcoin’s near-term trajectory. These maps monitor futures positions deployed at particular value ranges, serving to merchants anticipate potential value reversal zones. At first look, bears seem to have the higher hand, with $3.3 billion in lively shorts outpacing $2.3 billion in longs.
A better look reveals over 35% of the lively lengthy positions are concentrated round $114,458, the place $814 million may very well be liquidated. With the intraday complete liquidations of $267 million properly under that threshold, these positions are prone to stay intact. This implies Bitcoin stays positioned for an early rebound if bulls maintain the road above $114,500.
Bitcoin Liquidation Maps as of September 17, 2025 | Supply: Coinglass
On the upside, brief positions cluster closely round $118,000, the place greater than $1.8 billion might face liquidation. Missing stronger resistance zones, a breakout above this degree might ignite a brief squeeze, propelling Bitcoin value towards the $124,500 peak recorded in August.
Except buying and selling quantity will increase considerably, Bitcoin is prone to consolidate between $114,000 and $118,000 within the close to time period, as market individuals could stay cautious given the US Fed’s considerations about unemployment dangers.
Disclaimer: Coinspeaker is dedicated to offering unbiased and clear reporting. This text goals to ship correct and well timed info however shouldn’t be taken as monetary or funding recommendation. Since market circumstances can change quickly, we encourage you to confirm info by yourself and seek the advice of with knowledgeable earlier than making any choices primarily based on this content material.
Ibrahim Ajibade is a seasoned analysis analyst with a background in supporting varied Web3 startups and monetary organizations. He earned his undergraduate diploma in Economics and is at present learning for a Grasp’s in Blockchain and Distributed Ledger Applied sciences on the College of Malta.
