According to a Bitfinex Alpha report from Odaily Planet Daily, Bitcoin briefly fell to $112,500 following the Federal Reserve's rate cut, initially hitting $118,000, driven by short-covering and speculative buying. While profit-taking triggered market volatility, the derivatives market has shifted from a risk-off stance to a more balanced positioning, alleviating market concerns about a downturn. On-chain data shows that Bitcoin is currently trading above its 95% supply cost (approximately $115,200), with most holders returning to profitability. The Federal Reserve's first rate cut since 2024 highlights its ability to strike a delicate balance between a weak labor market and persistently high inflation. Macroeconomic pressures, sovereign digital currency initiatives, and regulatory breakthroughs are collectively shaping the global cryptocurrency landscape, potentially redefining the digital asset market.