Fed Rate Cut Sees Bitcoin Above $117K as ETF Flows Cool and Exchanges See Spot Selling

Key Takeaways

• The Federal Reserve cut 25 basis points to 4.25%; FOMC guidance is dovish, and markets now price a 94% chance of an October cut.
• Bitcoin moved back above $117,000 intraday; $118,000 remains the dominant liquidation/resistance zone.
• Spot ETF flows flipped: Bitcoin ETFs recorded $51.28 million net outflow on Sept 17 (first outflow after seven days of inflows). Ethereum ETFs were roughly flat with $1.89 million outflow.
• Exchange deposits: three distinct waves of inflows exceeding $25 million per block in the past 48 hours. This is indicative of partial spot selling into the bounce.
• Derivatives split: BTC and SOL perp open interest declined (less speculative long exposure); ETH, XRP, and BNB OI rose, highlighting reallocations within leverage pools.