Following the US Federal Reserve’s decision to implement a 25 basis point (bps) rate cut on Thursday, the cryptocurrency market has shown a notable resurgence. Bitcoin is currently trading near $117,300 (approximately ₹1.03 crore), while Ethereum has also witnessed a price increase, reaching $4,500 (around ₹3.9 lakh). This upward trend isn’t limited to the top two, as major altcoins including Dogecoin, Solana, and BNB have also recorded substantial gains. The Fed’s move lowers its benchmark rate to 4-4.25 percent, a development closely watched by investors across the digital asset landscape.
Altcoins Surge as Market Awaits Fed Chair Jerome Powell’s Insights
Individual altcoins are experiencing significant upticks. XRP is trading at $3.08 (roughly ₹271), Binance Coin (BNB) has ascended to $989 (approximately ₹87,100), Solana (SOL) climbed to $244 (around ₹21,500), and Dogecoin (DOGE) saw a rise of over 5 percent, reaching $0.279 (about ₹24). This vigorous market activity signals a blend of optimism and careful evaluation, as investors continue to assess the broader implications of the US Fed’s rate cuts alongside unique developments within various crypto sectors.
Avinash Shekhar, Co-Founder & CEO of Pi42, offered insights into the prevailing market sentiment. He noted that “the crypto market is processing the Fed’s 25 bps rate cut with unexpected composure, with Bitcoin slowly ascending despite initial fluctuations. Ethereum, on the other hand, is demonstrating considerable strength as investors anticipate new record highs. Intriguingly, while Bitcoin’s price action remains relatively stable, altcoins such as XRP and Dogecoin are displaying more pronounced reactions, indicating a significant capital shift occurring beneath the surface.”
Analyzing Bitcoin’s immediate prospects, the CoinSwitch Markets Desk observed that the Fed’s decision was “dovish in nature, acknowledging decelerated job growth, increased unemployment, and persistent inflation.” The market’s initial response was restrained, with BTC largely consolidating between $115,000 (approximately ₹1.01 crore) and $117,000 (about ₹1.03 crore). Although it briefly fell below a key support level, strong buying interest quickly pushed it back up. Now, with upward momentum building, Bitcoin is challenging the $117,800 (roughly ₹1.03 crore) resistance level.
Edul Patel, CEO of Mudrex, suggested that this rate cut could redirect significant liquidity back into the crypto and equity markets. He elaborated, “The rate cut has the potential to move approximately $7 trillion (around ₹6,16,91,000 crore) from money market funds into more speculative assets like cryptocurrencies and stocks, thereby injecting new capital into the markets. Given that the Fed has hinted at two additional cuts this year, upcoming macroeconomic data will be crucial for investors to monitor.”
Moving forward, traders are eagerly anticipating further comments from Chairman Powell and upcoming macroeconomic data to gauge the potential longevity of this rally. Should Bitcoin successfully break above $118,500 (approximately ₹1.04 crore), it could pave the way for new all-time highs. Conversely, strong support around $115,000 (roughly ₹1.01 crore) is expected to mitigate any immediate downward pressures.
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