Fed Rate Resumption Drives Crypto Recovery

Fed Rate Cut Resumption Boosts Market

The U.S. Federal Reserve resumed its rate-cut cycle on September 29, 2025, implementing another reduction to bolster a softening labor market, which has positively influenced risk assets including cryptocurrencies. This move led to a 2.3% increase in total crypto market capitalization to $3.95 trillion, with 24-hour trading volume at $134.7 billion, reflecting heightened activity. Bitcoin climbed to $112,975 and Ethereum to $4,177, as lower rates reduce the appeal of traditional yields, drawing capital into crypto. However, analysts note ongoing volatility due to bubble concerns and political risks, with recent liquidations exceeding $1.5 billion underscoring leveraged position vulnerabilities.

This rate adjustment aligns with historical patterns where Q3 has been Bitcoin’s weakest quarter, averaging only 6% gains, yet the resumption signals potential for Q4 momentum. Institutional inflows, such as $977M into Bitcoin and $772M into Ethereum last week, support this outlook, but traders should monitor breakout levels like Bitcoin’s $113,784 resistance. The event has stabilized the market after a 5% September dip, positioning crypto for possible consolidation or upward breaks if macroeconomic data remains favorable.

Other News

Positive 📈

• Sonic Summit Launch: Sonic Summit started Sep 29 with expected announcements for $S, driving ecosystem interest.
• Plasma Mainnet: Plasma launched mainnet and $XPL token on Sep 25, enabling zero-fee USDT transfers and neobank features.
• Hyperliquid Supply Cut: Proposal to reduce HYPE supply by 45%, enhancing scarcity and price potential.
• Institutional Inflows: $1.9B into digital assets last week, with BTC, ETH, SOL, and XRP leading.
• CFTC Tokenized Collateral: CFTC opens consultation for stablecoins as margin in derivatives, boosting adoption.

Neutral ⚖️

• Ethereum Fusaka Testnet: Upcoming launch on Oct 1, introducing upgrades like PeerDAS and blob expansion.
• Ronin Buyback: $RON treasury buyback starts Sep 29, absorbing supply without immediate price spikes.
• Anoma Listing: $XAN initial listing on Sep 29, focusing on privacy features.

Negative 📉

• Market Liquidations: Over $1.5B in liquidations wiped out gains, pushing BTC below $110K and ETH under $4K mid-week.
• UXLINK Exploit: UXLINK dropped 65% after a $11.3M hack, highlighting security risks.
• FTX Distribution Risks: $1.6B creditor payouts on Sep 30 could increase selling pressure.

Top Movers and Market Opportunities

Top Movers:

• Bitcoin: Up 2% to $112K amid Fed cut and inflows, showing resilience.
• Ethereum: Gained 2.6% to $4K, driven by testnet hype and ETF activity.
• BNB: Hit potential highs, favored in prediction markets for September performance.
• Solana: Up amid DeFi boom and inflows, despite weekly dips.
• HYPE: Surged on supply cut proposal.

Buying Opportunities: The market rebound post-Fed cut presents buying opportunities in undervalued assets like Ethereum near $4K support, ahead of Fusaka testnet, and Solana at $196 amid ecosystem growth. Bitcoin’s consolidation above $110K offers entry for long-term holds, but caution on volatility from FTX distributions.

Bitcoin Price Evolution Chart: