Crypto market rallies after FOMC’s May 7, 2025, decision: The Federal Reserve’s decision to hold rates at 4.25%–4.50% sparks bullish momentum.
Bitcoin surges past $102,000: BTC shows strength, up 3.5%–6% since the FOMC meeting, driven by institutional inflows.
Ethereum jumps to $2,300: ETH gains 17%–21% post-Pectra upgrade, outperforming BTC.
Altcoins ride the wave: Solana, XRP, and others post double-digit gains, though meme coins remain volatile.
Regulatory optimism fuels growth: Ongoing House discussions and ETF inflows boost market confidence.
Introduction: A Bullish Turn Post-FOMC
It’s 2:06 PM -03 on May 9, 2025, and the crypto market is buzzing with energy after the Federal Reserve’s FOMC meeting on May 7, 2025, where rates were held steady at 4.25%–4.50%. Fed Chair Jerome Powell’s data-driven outlook, coupled with tariff uncertainties, has ignited a bullish reversal, with Bitcoin smashing past $102,000 and Ethereum soaring to $2,300. Altcoins are joining the party, fueled by institutional interest and Ethereum’s Pectra upgrade. But what’s driving this rally, and can it last? Let’s dive into the market’s pulse and explore where we’re headed.
Market Snapshot: Green Across the Board
As of May 9, 2025, the global crypto market capitalization has surged 5.59% to $3.27 trillion, with 24-hour trading volume spiking 73% to $202 billion, signaling robust activity. Bitcoin is trading at $102,408–$104,116, up 3.5%–6% in the past 48 hours, with posts on X celebrating its push toward $104,000 (@CryptoMalfoy_, May 9, 2025). This rally, driven by spot Bitcoin ETF inflows and retail enthusiasm, has BTC eyeing $110,000 as the next resistance.
Ethereum is the star of the day, trading at $2,300–$2,360 after peaking at $2,400, a 17%–21% surge in 24 hours. The Pectra upgrade, launched May 7, has boosted staking confidence, with trading volume up 140% to $51.12 billion. X users note ETH’s outperformance, with some calling it the start of “altcoin season” (@Wexboy_Value, May 9, 2025). Altcoins are also shining: Solana (SOL) climbs 5% to $154.50, XRP rises 3% to $2.25, while meme coins like Dogecoin (DOGE) at $0.1750 and Shiba Inu (SHIB) at $0.00001350 see volatility with 2%–5% fluctuations. Cardano (ADA) and Avalanche (AVAX) hold at $0.6900 and $20.00, buoyed by DeFi and Layer-2 developments.
Cryptocurrency Price (USD, May 9, 2025) Market Cap (USD Billion) 2-Day Change (%) Bitcoin (BTC) 102,408 1,950 +3.8 Ethereum (ETH) 2,360 283.50 +19.0 Solana (SOL) 154.50 80.10 +5.0 XRP 2.25 131.50 +3.0 Dogecoin (DOGE) 0.1750 26.00 -2.0 Shiba Inu (SHIB) 0.00001350 7.95 -3.5 Cardano (ADA) 0.6900 24.50 +1.5 Avalanche (AVAX) 20.00 8.40 +0.5
FOMC Impact: Fueling the Rally
The FOMC’s decision to maintain rates at 4.25%–4.50% was anticipated (94% probability), but Powell’s comments about a “data-dependent” approach and tariff concerns have sparked optimism. X posts highlight a 70% chance of a June rate cut, which could further boost liquidity for risk assets like crypto. Powell noted solid economic activity and inflation at 2.8% (core PCE, March 2025), suggesting the Fed is comfortable waiting for more data. This has driven a “risk-on” sentiment, with Bitcoin’s 6% weekly gain and Ethereum’s 20% pump reflecting market confidence. If yields on 10-year Treasuries stay below 5%, analysts see room for crypto to rally further, with ETH potentially hitting $2,500 soon.
Regulatory Tailwinds: ETFs and Policy Clarity
The House Financial Services Committee’s May 6, 2025, hearing on digital assets has bolstered optimism, with discussions leaning toward regulatory clarity. BlackRock’s Ethereum ETF, holding $3.5 billion (993,591.95 ETH), underscores institutional demand, outpacing Fidelity’s inflows. The SEC Virtual Asset Roundtable (May 12) and Senate’s GENIUS Act vote (May 26) could further shape policy, potentially attracting more capital. X users are hopeful, with some predicting a “crypto-friendly” U.S. policy shift under the Trump administration (@CoinMarketCap, May 9, 2025).
Market Sentiment and Expert Insights
The Crypto Fear & Greed Index is at 70/100, nearing “Extreme Greed,” reflecting bullish sentiment. However, $200 million in futures liquidations over 48 hours warns of volatility. On-chain data shows whale accumulation and exchange outflows, signaling long-term confidence. Experts like VanEck predict Bitcoin at $180,000 and Ethereum at $11,800 by 2030, with 2025 targets of $150,000 and $6,500, respectively. On X, analysts like @Cryptolaxy note ETH’s 19% daily gain as a sign of altcoin strength. A bearish scenario, per King Baldwin, could see BTC dip to $91,500 if tariffs spike inflation, but the consensus leans bullish.
What’s Next: Key Catalysts
Several events could drive the market forward:
Ethereum’s Pectra upgrade (May 7, 2025): Enhanced scalability is already lifting ETH sentiment.
Token unlocks: SUI ($253M, May 1), ENA ($13M, May 2), and APT ($62M, May 12) may pressure altcoin prices.
Regulatory milestones: SEC Roundtable and GENIUS Act vote could clarify U.S. policy.
Economic indicators: Inflation and jobs data will shape the Fed’s June 17–18, 2025, meeting.
Relevant Statistic
Per CoinMarketCap, Bitcoin’s market dominance hit 57.8% on May 9, 2025, up from 56.5% pre-FOMC, while Ethereum’s dominance rose to 8.9%, reflecting altcoin strength.
Conclusion: Riding the Bullish Wave
The crypto market is thriving post-FOMC, with Bitcoin at $102,408, Ethereum at $2,360, and altcoins posting strong gains. The Fed’s steady rates, ETF inflows, and regulatory optimism are fueling this rally, but volatility looms with tariff and economic uncertainties. As an investor, now’s the time to stay sharp—monitor technical levels, regulatory news, and macro data. Are you riding this wave or waiting for a dip? The market’s hot, but it’s never without surprises.
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