Crypto is stirring up before the Fed's interest rate decision - Will there be a "sell the news"?

Traders on both CME FedWatch and Poly Market are currently in agreement that the Fed will decide to lower interest rates by 0.25% tonight and there is a possibility of three rate cuts totaling 0.75% from now until the end of the year.

Confidence in the Fed's policy pivot is partially reflected through on-chain data:

- The amount of BTC deposited on exchanges is only 25,000 BTC/day in the last 7 days - the lowest level in 18 months. The amount of BTC deposited each time has also halved to only 0.57 BTC per deposit.

- ETH has also recorded a similar trend as the amount of ETH deposited on exchanges has decreased to 783,000 ETH - the lowest in 2 months. The average deposit amount each time has also dropped from 45 ETH to 30 ETH.

- In contrast, the amount of USDT deposited on exchanges peaked at $379M at the end of August - the highest in the year and is currently still maintaining ~$200M.

- Specifically, the market cap of USDT has increased by $6B since the beginning of September, of which 2 billion USDT was issued just last night on 16/09.

=> The Fed's interest rate cut seems to have been fully priced in by the market.

=> The crypto market with large investors is remaining still, in a “HODL” state, plus a continuous influx of stablecoin liquidity, has enough strength to absorb "sell the news" and turn that into sustainable upward momentum!?