Effect Of Fed Rate Cut On Crypto: Experts Weigh In On Impact Of Federal Reserve Rate Cut On Bitcoin, Ethereum

The US Federal Reserve’s 25 basis point (bps) rate cut influenced markets, with Bitcoin trading at $117,117.12. Ethereum and other major cryptocurrencies also witnessed slight rise with analysts warning that the decision could impact investor sentiment and liquidity in the crypto market.

According to CoinMarketCap data, Bitcoin recovered slightly, rising 0.44 per cent to trade around $117,274.06, following the Federal Reserve’s 25 bps rate cut, which earlier pushed the token near $117,906.14. Its 24-hour trading volume stood at $66.68 billion, marking a weekly gain of 2.60 per cent. Ethereum gained 2.11 per cent, trading near $4,598.46, with a 24-hour volume of $47.80 billion, up 3.60 per cent over the week.

How The Crypto Market Responded To The Fed’s Rate Cut

Industry experts discussed the potential effects of the Fed’s rate cut on Bitcoin, Ethereum, and the broad cryptocurrency market movements.

Edul Patel, CEO of Mudrex said: “The Federal Reserve’s 25 bps rate cut has lifted market sentiment, pushing Bitcoin decisively above the $117,000 resistance level, with the broader market following a similar trend. Institutional inflows have remained strong, with Bitcoin exchange-traded funds (ETFs) recording over $3 billion in September, and retail participation is also expected to grow.”

He added, “Lower interest rates creating a risk-on environment, making crypto assets attractive for investors seeking higher-yielding opportunities beyond traditional markets.”

Sumit Gupta, co-founder of CoinDCX, said that the Fed’s decision has further strengthened Bitcoin’s bullish narrative, creating new opportunities for investors. “With the US economy showing signs of weakness, the bullish narrative for Bitcoin is only getting stronger. For Indian investors, this is a gateway to participate in global markets beyond domestic cycles. The recent 25 bps Fed rate cut has increased Bitcoin’s price, and a clean breakout could pave the way for fresh all-time highs. Over the next decade, Bitcoin may even rival gold as a store of value, offering new avenues for wealth preservation and portfolio diversification.”

Sathvik Vishwanath, co-founder & CEO of Unocoin, added a technical viewpoint. He said: “Bitcoin is trading between key support and resistance levels, with a potential breakout above $117,500. Traders anticipate higher volatility after the Fed’s decision, which has a 94 per cent probability of a 25 bps cut, while a drop below the 20-day EMA could extend consolidation within $107,000–$117,500."

Impact On Altcoins

Beyond Bitcoin and Ethereum, altcoins registered notable gains following the US Fed’s rate cut. XRP (XRP) traded at $3.10, up 3 per cent in the last 24 hours. Binance Coin (BNB) gained 4.41 per cent to $997.41, after briefly touching a new all-time high of $1,005. Solana (SOL) advanced 4.48 per cent to $246.73, while Cardano (ADA) rose 4.95 per cent to $0.9175. Additionally, the altcoin movement as an overall shows how market sentiment on risk appetite and liquidity is impacting trade activity across digital assets.