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Bitcoin Nears $118,000 as Fed’s Rate Cut Triggers Broad Crypto Rally

Major cryptocurrencies surge on renewed optimism — Bitcoin, Ethereum, and meme coins lead the charge while SocialFi remains under pressure

On September 18, 2025, the cryptocurrency market saw a strong upward move after the U.S. Federal Reserve slashed interest rates by 25 basis points, reigniting investor confidence in risk assets including digital currencies.


Key Market Movements

  • Bitcoin (BTC) popped up by about 1.1%, reaching nearly $117,700, buoyed by expectations of easier monetary conditions.

  • Ethereum (ETH) also gained, surpassing $4,600 as momentum built across several sectors.

  • Solana and numerous meme coins posted even stronger gains, with the latter jumping by over 5%.


Sentiment & Sector Highlights

  • The overall crypto market cap rose by approximately 2.2%, lifting the total valuation above $4.2 trillion.

  • Despite widespread gains, SocialFi (social finance / social networking crypto projects) lagged, showing signs of fatigue for the second day.

  • Investor sentiment improved broadly, powered by the Fed’s move and hopes of further rate cuts later in the year.


What’s Next

  • Market watchers will be looking for signs of how monetary policy unfolds in coming months, especially regarding the possibility of more easing.

  • Volatility remains a factor, especially in sectors like meme coins which tend to swing widely on sentiment.

  • Continued underperformance in SocialFi could lead to rotation of capital into more resilient altcoins, infrastructure tokens, or Layer 1 blockchains.

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