Crypto news: Here's how BTC, ETH, altcoins are faring after US Fed rate cut

The cryptocurrency market witnessed renewed momentum as flagship currency Bitcoin (BTC) and major altcoins responded positively to a fresh 23 basis point interest rate cut by the US Federal Reserve. The rate reduction triggered a surge in market activity and reinforced expectations of a more accommodative monetary policy in the months ahead. Additionally, the Fed signaled the possibility of two more rate cuts later this year, boosting investor sentiment and improving liquidity expectations across financial markets.  The move sparked a rally across the crypto market, with BTC briefly climbing above $117,900 before easing slightly. The rate cut also triggered over $105 million in market liquidations, reflecting a spike in trading activity and market volatility. 

 

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At last check, Bitcoin was trading at $117,175, marking a slight 0.06 per cent decline over the past 24 hours. According to CoinMarketCap, the asset traded within a narrow range between $114,794 and $117,906 during the session. Its daily trading volume surged to $66.57 billion, while market capitalisation remained steady at $2.33 trillion, reinforcing Bitcoin’s status as the world’s largest digital asset.

Analysts offer diverging views

Edul Patel, CEO of Mudrex, maintains a positive outlook on Bitcoin’s trajectory. He believes the Fed’s monetary easing could redirect up to $7 trillion currently parked in money market funds toward riskier assets like cryptocurrencies and equities. Patel noted that this potential influx of liquidity could serve as a major catalyst for the crypto market in the months ahead.

 

"A sustained move above $117,000 could pave the way for new all-time highs, with strong technical support now forming around the $115,000 level," said Patel.

 

In contrast, Vikram Subburaj, CEO of crypto exchange Giottus, offered a more cautious perspective. He acknowledged that while the Fed’s move has strengthened the long-term case for increased liquidity, near-term conditions remain fragile.

 

"Unless Bitcoin maintains $115,000 as a firm support base, price action could stay choppy, especially amid ongoing leverage-driven trading," said Subburaj. 

 

Ethereum, other altcoins gain

Ethereum (ETH) followed Bitcoin’s lead, posting modest gains over the past 24 hours. ETH was last trading at $4,580, up 0.80 per cent, with intraday price fluctuations between $4,429 and $4,643. Trading volume reached $46.77 billion. Despite its recovery, Ethereum remains approximately 7 per cent below its recent peak of $4,953, reached on August 25, 2025. The steady upward trend, however, indicates growing investor confidence and renewed interest in the asset.

 

Meanwhile, altcoins are showing even stronger momentum as capital shifts into high-beta digital assets. Hyperliquid and Avalanche posted gains of over 8 per cent, while Solana and Cardano each rose by around 3 per cent during the session. Binance Coin (BNB) touched new highs amid rising network activity, signaling increased engagement and user adoption. These trends suggest that investors are rotating into altcoins in anticipation of continued dovish policy signals from the Fed. 

Regulatory developments

In a major development for the industry, the US Securities and Exchange Commission (SEC) has approved generic ETF listing standards, eliminating the requirement for individual approvals for certain digital asset ETFs, according to the CoinDCX Research Team. Additionally, the SEC approved the Grayscale Digital Large Cap Fund for public trading. The fund includes leading digital assets such as Bitcoin, Ethereum, XRP, Solana, and Cardano, making it one of the most diversified crypto investment vehicles now accessible to traditional investors.

 

Adding to the momentum, CME Group is reportedly preparing to launch options on Solana and XRP futures, a move expected to deepen liquidity in altcoin derivatives and further institutionalize these markets.