The US Federal Reserve’s 25 bps rate cut sparks cautious optimism as investors rotate into altcoins like XRP.
Fed’s policy easing sparks optimism across digital assets, with investors tracking fresh liquidity
Photo Credit: Unsplash/André François McKenzie
After the US Federal Reserve delivered a 25 basis points (bps) rate cut on Thursday, Bitcoin is trading around $117,300 (roughly Rs. 1.03 crore) while Ethereum also saw its price rise, and it is currently trading at $4,500 (roughly Rs. 3.9 lakh). At the same time, altcoins such as Dogecoin, Solana, and BNB posted solid gains. The US Fed has lowered its benchmark rate to 4-4.25 percent. As per the price tracker on Gadgets 360, Bitcoin stands at Rs. 1.02 crore, while Ethereum trades at Rs. 3.98 lakh.
XRP trades at $3.08 (roughly Rs. 271), Binance Coin (BNB) climbs to $989 (roughly Rs. 87,100), Solana (SOL) rose to $244 (roughly Rs. 21,500), and Dogecoin (DOGE) gained over 5 percent to $0.279 (roughly Rs. 24). Market activity reflects optimism but with caution, as traders weigh in the aftermath of the US Fed rate cuts and sector-specific developments.
Avinash Shekhar, Co-Founder & CEO of Pi42, explained the market's tone and further said, “The crypto market is digesting the Fed's 25 bps rate cut with surprising calm, as Bitcoin is moving upwards slowly despite initial volatility […] Ethereum, meanwhile, is flashing strength as bulls eye fresh record highs […] Interestingly, despite neutral price action in Bitcoin, altcoins like XRP and Dogecoin are showing stronger reactions, suggesting capital rotation beneath the surface.”
Highlighting Bitcoin's near-term setup, the CoinSwitch Markets Desk said, “The decision carried a dovish tilt, acknowledging slower job gains, rising unemployment, and sticky inflation. The immediate market reaction was muted. BTC largely consolidated around $115,000 (roughly Rs. 1.01 crore), swinging between $115,000-$117,000 (roughly Rs. 1.01 crore-1.03 crore) and briefly dipping below the support level before buyers stepped in. With momentum now shifting higher, BTC is testing $117,800 (roughly Rs. 1.03 crore) resistance.”
Mudrex CEO Edul Patel added that liquidity may now shift back toward crypto and equities, “The rate cut could push about $7 trillion (6,16,91,000 crore) of funds parked in money market funds towards riskier assets like crypto and stocks, bringing fresh liquidity into the markets. With the Fed signalling two more cuts this year, macroeconomic data in the coming days should be closely watched.”
Traders now await Powell's comments and macroeconomic data for further clues on the sustainability of this rally. A breakout above $118,500 (roughly Rs. 1.04 crore) could open the door for fresh highs, while support near $115,000 (roughly Rs. 1.01 crore) may cushion short-term downside risks.
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