Cryptographic markets failed to increase after the decline in Fed rates.
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The cryptographic markets did not succeed on Wednesday, September 17 after the decision -makers of the Federal Reserve reduced the reference rates for the first time since December.
Bitcoin, the largest digital currency in the world by total market value, was negotiated between $ 115,000 and $ 116,000 when the Federal Open Market Committee published a declaration at 2 p.m. HNE announcing that it reduced the target range for the rate of federal funds to 400 to 425 basic points, according to Coinbase data.
In the coming hours, the price of these digital assets has been shortly moved, falling below $ 115,000, then increasing $ 117,000 around 7 p.m. Hne, reveal additional figures.
Ether, the second largest cryptocurrency, experienced a modest volatility, going from around $ 4,600 at the time of the announcement to around $ 4,430, then dates back to around $ 4,620.
By explaining these developments, some analysts said that the rate drop of 25 bp had already been baked by the markets.
Julio Moreno, responsible for the cryptocurrency research, spoke to this via Telegram, declaring that “today, we have not seen a lot of volatility because the decision of interest of the Fed had been planned for a long time – the market saw a reduction of 25 bps with a probability greater than 90%.”
Brian Huang, co -founder of Fintech Firm Glider, also weighed, indicating by email by email that “the cryptographic markets had a drop in rate today, and therefore BTC and ETH are stable during the day.”
Several analysts have described this drop in rate as a positive development for markets.
“The drop in the Fed rate today is a positive signal that liquidity is back on the table, which leads to an increase in short-term feeling,” said Qin en Looi, director of the venture capital company Onigiriindicated by e-mail.
Moreno offered a similar perspective, declaring that “in general, a reduction in the Fed is a positive catalyst for risk assets such as cryptocurrencies and could mark the start of a rally in the fourth quarter, because the advice of the Fed concerned more interest rate drops this year.”
Key role of the Fed
In the future, several analysts have underlined the crucial role that the central bank will play in the cryptographic markets.
“When Powell flashes, risk assets breathe and Bitcoin inhales more deep than most,” said Doug Colkitt, founding contributor to Fogo, by e-mail.
“The sad but unavoidable reality is that the market is always addicted to the Fed signals, even if Crypto has been built to escape them,” he added.
Thomas Perfumo, a world economist in Kraken, also commented on this situation, offering a long -term perspective.
“The federal reserve and the markets seem to be aligned on the expected trajectory of rate drops at the end of 2025 and in 2026, a backdrop which remains largely favorable to risk assets, including Crypto,” he said by email.
“Having at the expectation, market performance is based on macroeconomic indicators such as employment and inflation data. These will play a central role in determining if increasing 25 BPS cuts are sufficient,” added Perfumo.
Greg Magadini, Director of derivatives for the provider of digital asset data AmbredataAlso weighed, stressing how important it is for the Fed to act of his free will and his agreement.
“I continue to believe that the largest engine of asset prices, in particular gold and bitcoin, revolve around the independence of the Fed. This independence remains in question in particular in 2026 when a new president of the Fed will take over,” he said by e-mail.
Although the central bank policy will have a significant impact on cryptographic markets, innovation in space will be the engine of asset price changes, said Colkitt.
“If the Fed remains on a dominant path, expect more capital that runs in the High Crypto Games,” he said.
“But let’s be clear: macro is the wind, and cryptographic innovation is the engine.
