After the Fed's decision to cut interest rates by 25 basis points for the third time in a row in 2025, an increase in Bitcoin price was observed.
This reduction aims to encourage businesses and individuals to borrow at lower costs as part of the Fed's strategy to support economic recovery. This situation has a direct impact on riskier assets like Bitcoin, which generally gain value with increased institutional confidence.
This move is seen as a positive development for Bitcoin and the broader cryptocurrency market. Historically, low interest rates weaken the US dollar and make traditional assets like stocks and bonds less attractive. As a result, more buyers may prefer Bitcoin and other cryptocurrencies as an alternative store of value. Following the announcement of the rate cut, Bitcoin's price briefly rose to 94.044 dollars, but the long-term outlook continues to depend on how well the asset can surpass significant resistance levels, such as 100.000 dollars.
Reactions of Institutional and Individual Investors to Interest Rate Cuts
The reaction to the 25 basis point interest rate cut was largely positive, especially among institutional buyers. With the U.S. dollar losing its appeal, Bitcoin became a more attractive investment vehicle. Smart wallets are accumulating Bitcoin; this demonstrates strong institutional confidence in the cryptocurrency space despite overall market uncertainty. The significant reduction in open positions for Bitcoin, which stands at 27.5 billion dollars, also indicates that some buyers are focusing on Bitcoin as a hedge against inflation.
On the retail side, Bitcoin experienced a short-term fluctuation following the announcement. Some investors reacted with optimism, while the typical 'buy the rumor, sell the news' effect led to rapid sell-offs after the interest rate cut was confirmed. However, this short-term fluctuation should not overshadow the long-term bullish expectations for Bitcoin, especially if the macroeconomic environment continues to support risky assets like cryptocurrencies.
Cryptocurrency analyst Michaël van de Poppe noted that Bitcoin is 'following a bullish trend' and that the volatility caused by the FOMC decision could lead to some uncertainty, stating, 'if it stays above [91,800 dollars], it is very likely that Bitcoin will continue to rise towards 100,000 dollars, as it is on the verge of breaking through peaks and will start to gain momentum from here.'
The project has also passed audits from SolidProof and Coinsult, providing transparency and security for buyers. Minotaurus, which has raised over 2.98 million USDT so far in its presale, is gaining momentum. The low entry price offers an attractive opportunity for early-stage buyers looking for high potential advantages parallel to the rise of the casual gaming sector.
Stay tuned for new developments.
