On September 17, 2025, the Federal Reserve cut interest rates by 25 basis points, setting the upper bound at 4.25%. The crypto market, led by
$BTC , felt immediate ripples. Fed Chair Jerome Powell’s press conference added critical context, driving volatility. We tracked live price action, liquidations, and macro signals to assess the impact on cryptocurrencies.
Live Coverage: FOMC Rate Call and Powell’s Presser
Immediate Crypto Market Reaction
The Fed’s rate cut triggered sharp volatility.
Bitcoin briefly surged but pulled back as traders parsed Powell’s cautious tone. Ethereum (
$ETH ) mirrored this, while altcoins saw amplified swings due to their higher beta.
Within 30 minutes, over $105 million in liquidations hit, catching leveraged traders off-guard as margin calls cascaded.
Powell’s Key Statements
Powell emphasized that the Fed’s dot plot and rate projections are probabilities, not certainties, urging markets to remain adaptable. He acknowledged the economy “has slowed down” and stated the job market is no longer “solid,” signaling rising employment concerns.
This shift justified the rate cut despite inflation exceeding the Fed’s 2% target. Powell’s candid admission that he’s unsure if the 25bp cut will “make a huge difference” leaned dovish, hinting at potential for bolder easing if economic momentum weakens further.
Macro and Crypto Market Signals
Dollar, Yields, and CME Odds
Some altcoins weakened slightly post-decision, supporting risk assets. CME FedWatch odds adjusted, pricing in a higher probability of additional 2025 cuts.
Funding rates for top coins perpetuals turned less negative, and open interest stabilized, reflecting cautious optimism. Options implied volatility spiked briefly before cooling.
Crypto Price Dynamics
Despite the dovish tilt, some bulls were disappointed, expecting a stronger rally.
$BTC aced selling pressure at key resistance levels, while
$ETH struggled to hold gains.
Altcoins showed mixed results: high-beta names displayed resilience, while others lagged. The dot plot’s cautious outlook and Powell’s focus on employment risks suggest crypto markets may face ongoing volatility as traders recalibrate for a looser Fed trajectory.
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