Bitcoin holds key support at $115,440 after Fed rate cut sparks crypto rally; analysts eye potential rise to $137,300 or drop to $93,600.
The recent Federal Reserve rate cut has sparked a notable rally in the cryptocurrency market, with Bitcoin (BTC) and several altcoins experiencing strong price gains.
This surge followed the announcement of a 25 basis point rate reduction on September 17, 2025, which has led to increased optimism across various markets. As the crypto market rises, the central question remains: Will Bitcoin keep pace with the S&P 500’s performance in the months ahead?
Fed Rate Cut Spurs Market Optimism
On September 17, Jerome Powell, Chairman of the Federal Reserve, revealed a 25 basis point interest rate cut—the first reduction of 2025. Investors responded positively, and the crypto market saw a substantial uptick in trading activity.
Leading cryptocurrencies, including Bitcoin, Ethereum (ETH), and Binance Coin (BNB), experienced notable price increases, with altcoins like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also rising between 3–5%.
Bitcoin daily trading volume surged 41% to over $67 billion, indicating increased investor interest. Analysts believe the rally was largely driven by expectations of a liquidity boost following the rate cut.
Additionally, the U.S. Securities and Exchange Commission (SEC) recently approved a rule change that could allow crypto ETFs to gain approval more easily, further fueling market enthusiasm.
Blockchain analytics firm Glassnode reported that open interest in Ethereum, XRP, and BNB was rising, showing a growing appetite for directional exposure in these assets.
Bitcoin Potential to Follow S&P 500’s Path
Bitcoin has often mirrored the performance of the S&P 500, with both markets typically reacting similarly to broader economic conditions.
Historically, the S&P 500 has rallied by an average of 14-15% in the year following a Fed rate cut. Analysts are now wondering if Bitcoin will follow the same path, especially as the S&P 500 hits all-time highs above 6,600 points.
Bitcoin, however, has yet to experience a breakout, remaining within the $112,000–$115,000 range. As Bitcoin price fluctuates within this range, many experts believe that it could soon rally, potentially catching up with the S&P 500’s gains.
According to the Kobeisse Letter, when rate cuts happen near record highs for the S&P 500, the index typically sees further growth.
Bitcoin Key Support Levels and Market Outlook
Crypto analyst Ali Martinez has identified $115,440 as a key support level for Bitcoin. If it holds this level, BTC could move toward $137,300. However, a drop below this support could lead to a decline to $93,600.
$115,440 is the most important support level for Bitcoin $BTC, according to the Pricing Bands.
– Hold it, and $137,300 is next.
– Lose it, and $93,600 comes into play. pic.twitter.com/zVWLnPKKtd— Ali (@ali_charts) September 18, 2025
Currently trading at $117,531, Bitcoin shows a modest 1% increase. The market remains cautious as volatility subsides, with traders awaiting further direction. Analysts are closely monitoring support and resistance levels to predict Bitcoin next move.
The overall crypto market sentiment is bullish, driven by the Fed’s rate cut and hopes for more liquidity. However, Bitcoin ability to maintain its gains and keep pace with the S&P 500 depends on economic conditions, regulatory changes, and investor sentiment.
