Bitcoin (BTC) Volatility After Fed’s 25bp Cut — $119K Liquidation Cluster Could Spark Short Squeeze Toward $120.7K; $112K Key Support

The Federal Reserve implemented a 25 basis point rate cut, with Chair Powell flagging ongoing inflation risks and labor-market pressures, leaving policymakers’ forward guidance indeterminate and prompting market participants to prioritize data-driven signals such as initial jobless claims. Equity benchmarks have fluctuated amid a simultaneous uptick in bond yields and the US dollar, reflecting a tension between lower borrowing costs and muted risk appetite from inflation and employment concerns. In the crypto market, the BTC spot price trades near $117,300 with technical support at $115,500 and $113,800; a concentration of liquidation orders sits in the $118,800–$119,000 band, where a breach could prompt a short squeeze toward $120,700, while a drop below $112,000 risks cascading liquidations. Bitunix analysts caution that the Fed’s dovish shift without clear guidance has heightened volatility, making imminent data releases pivotal for leveraged positions.

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