The Fed Cuts Interest Rates, Top-5 Cryptos Pump Immediately
Posted18/09/2025
Written ByYepi Muhamad
The crypto market regained momentum after the Federal Reserve (The Fed) announced a 25 basis point rate cut during the September FOMC meeting. This decision lowered the upper bound of interest rates from 4.50% to 4.25%, in line with market expectations. Official Fed Source.
Nick Timiraos, reporter for WSJ, also reported that the majority of Fed officials projected at least three more rate cuts this year, signaling a dovish stance. Interestingly, only one official, Miran, dissented arguing for a more aggressive cut of 50 basis points. See Nick’s report on X.
Market Impact: Top-5 Cryptos Pump in Unison
Rate cuts typically spark positive sentiment for risk assets like crypto. The logic is simple: cheaper money = investors more willing to take risks. This was evident in the top-5 cryptos on CoinGecko (Sept 18, 2025, noon WIB):
Source: CoinGecko
As shown, nearly all major assets pumped except USDT, which remains stable at $1 as a stablecoin.
Why Do Cryptos Rise When the Fed Cuts Rates?
- Increased liquidity → Lower borrowing costs give investors more flexibility to move into risk assets.
- Expectations of further cuts → The market views the Fed as supporting growth, boosting risk appetite.
- Domino effect on altcoins → After BTC rallies, funds often flow into ETH, BNB, and other large-cap altcoins.
What Does This Mean for Crypto Investors?
- Short-term traders can take advantage of the bullish momentum, but must remain cautious of quick corrections given crypto’s high volatility.
- Long-term holders benefit from looser monetary policy, which historically supports the rise of risk assets like crypto and stocks.
- Stablecoins (USDT) remain essential as liquidity hubs, even if their price stays flat.
Conclusion
The Fed’s rate cut immediately revived the crypto market, with BTC, ETH, XRP, and BNB all rallying within 24 hours. If the Fed maintains its dovish stance, the market could be on the brink of a new bullish phase.
However, investors should remain disciplined and manage risks wisely, as volatility can strike at any time.
