Bitcoin recorded a positive price trend after the Federal Reserve (FED) announced a 25-basis-point interest rate cut. This move was anticipated by analysts, and its immediate effects were seen on the markets.

Bitcoin and first market reaction to the Fed’s decision

In September 2025, according to Trading Economics, the Federal Reserve cut rates by 25 basis points to 4.00% – 4.25%. Governor Stephen Miran voted for a larger half-point cut. The FED expects further reductions by the end of 2025, higher GDP growth, and slightly higher inflation in 2026.

Investors monitored in real-time as the cryptocurrency briefly recorded increased trading volume. For many traders, this indicated that even small moves by the FED can trigger volatility, which is typical for cryptocurrencies.

Bitcoin responded positively to the FED rate cut, but the price fluctuation was minimal. Most investors had already anticipated the reduction, so the event was largely priced in.

After the announcement, the price briefly approached the $118,000 mark, but it currently trades at $117,466 according to TradingView. Despite the muted reaction to the FED’s decision, Bitcoin continues its positive trend, having gained 9.50% since the beginning of September, indicating that the market still views the cryptocurrency favorably.

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Trump and question of Fed independence

Besides the FED’s decision itself, the political context plays an important role. U.S. President Donald Trump has long been pushing the central bank to implement a more substantial rate cut. His efforts to boost the economy through cheaper financing raise questions about the FED’s independence.

Trump’s open criticism of the central bank is not new. He has repeatedly stated that the current leadership, especially Jerome Powell, is not flexible enough. He even attempted to remove Powell and appointed his own adviser, Stephen Miran, to the Board of Governors.

Financial markets therefore react not only to changes in interest rates but also to political interference in institutions that are supposed to be stable pillars of the economy. Bitcoin thus becomes a measure of uncertainty, reflecting the growing tension between independent monetary policy and political ambitions.