Investors Cautiously Watch as Crypto Remains Rangebound Amid Fed Rate Cut Hopes

Bitcoin's price has remained relatively stable near $111,000 as the cryptocurrency market shows limited reaction to growing expectations of a Federal Reserve rate cut in the coming week. Despite heightened market speculation for a 25-basis-point cut at the Fed’s September 17 meeting, Bitcoin's price has not seen significant volatility. The latest U.S. jobs data, showing a slowdown in employment growth and an increase in the unemployment rate to 4.3%, has strengthened sentiment around a potential rate cut but has not translated into stronger price momentum for Bitcoin or Ethereum [1].

Investor sentiment remains cautious as global markets react to macroeconomic uncertainties, including political developments in countries like Japan and France. Additionally, the broader risk asset space, including equities and gold, has responded positively to the possibility of easier monetary policy, while cryptocurrencies remain rangebound. Japanese hotelier Metaplanet Inc recently added 136 Bitcoin to its holdings, bringing its total to 20,136 BTC, yet the move did not trigger a substantial price reaction [1].

Ethereum's price has also shown muted movement, currently trading at $4,300 after a sharp decline from its peak of nearly $4,500 in August. Analysts are watching closely for signs of a breakout or breakdown, with key resistance at $4,500 and support at $4,200. The risk of long liquidations of over $236 million looms should the price fall below $4,200. Conversely, a move above $4,500 could reignite bullish momentum, particularly if ETF inflows or DeFi adoption shows renewed strength [4].

Despite the current price stagnation, some analysts remain optimistic about Ethereum’s long-term potential, projecting a price target of $6,000 in 2025. This optimism is driven by continued institutional interest, the rollout of Ethereum ETFs, and the asset’s role in decentralized finance and enterprise adoption [5]. However, short-term challenges persist, as Ethereum ETFs have seen net outflows this week, with investors shifting capital back to Bitcoin [3]. This suggests a re-rotation of institutional capital within the crypto market that could impact Ethereum’s near-term performance.

In parallel, attention is also turning to emerging altcoins like BlockchainFX (BFX), which is being positioned as a potential 1000x investment opportunity by 2025. With its presale offering already attracting substantial participation, including whale-level investments exceeding $50,000, BFX has drawn comparisons to Ethereum’s early trajectory. The project's ecosystem, which includes a live trading platform and daily passive income rewards, has led to speculation about its long-term viability and potential to outperform existing crypto assets [6].

Market observers note that the next few weeks will be crucial for both Bitcoin and Ethereum, with key on-chain and off-chain catalysts in play. These include the upcoming U.S. CPI and PPI reports, the Federal Reserve's policy decision, and ongoing regulatory developments. On-chain metrics such as stablecoin supply and declining exchange balances for Bitcoin and Ethereum suggest there is potential for a rally if the right macroeconomic conditions are met [2]. However, without significant ETF inflows or broader liquidity expansion, breaking through the $120,000 threshold for Bitcoin or $6,000 for Ethereum remains a distant prospect.

Looking ahead, investors are advised to monitor key price levels and liquidity conditions. For Bitcoin, support near $110,000 remains critical, while resistance at $113,400 and beyond could signal a retest of previous highs. For Ethereum, the battle for $4,500 will be a key barometer of whether the market is ready to absorb recent selling pressure and resume a bullish trend. Both assets face macroeconomic headwinds, including inflationary pressures and cautious risk sentiment, but remain positioned as core components of the crypto market’s institutionalization [2].

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[1] Bitcoin price today: subdued near $111k despite rising Fed cut bets (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-subdued-near-111k-despite-rising-fed-cut-bets-4228121)

[2] Bitcoin stalls around $110000; Fed rate cut may not spark rally (https://www.theblock.co/post/369743/bitcoin-rate-cut-may-not-spark-rally)

[3] BTC dip predictions fall below $90k: 5 things to know in Bitcoin this week (https://cointelegraph.com/news/btc-dip-predictions-fall-below-90k-5-things-to-know-in-bitcoin-this-week)

[4] Ethereum price prediction | Is $4200 about to collapse? (https://crypto.news/ethereum-price-prediction-is-4200-about-to-collapse/)

[5] $6K ETH still possible despite spot market weakness (https://coincentral.com/ethereum-price-prediction-6k-eth-still-possible-despite-spot-market-weakness/)

[6] Whales bet six figures on BlockchainFX presale as Ethereum price prediction 2025 shows why they’re shifting focus (https://blockchainreporter.net/whales-bet-six-figures-on-blockchainfx-presale-as-ethereum-price-prediction-2025-shows-why-theyre-shifting-focus/)