Introduction
The Federal Reserve delivered its first rate cut of 2025, triggering mixed reactions across cryptocurrency markets. Bitcoin maintained stability around $116,000 while BNB shattered the $1,000 barrier for the first time. Meanwhile, new XRP and DOGE ETFs saw record inflows despite regulatory delays elsewhere.
Key Points
- Federal Reserve implements first 2025 rate cut of 25 bps following political pressure
- New XRP and DOGE ETFs achieve record inflows despite SEC delaying other crypto ETF approvals
- BNB reaches historic $1,000 milestone while Bitcoin dominance holds at 55.7% of $4.15T market
Fed Rate Cut and Bitcoin's Measured Response
The US Federal Reserve’s highly anticipated 25 basis point interest rate cut marked a significant monetary policy shift, coming after sustained political pressure from former President Donald Trump. Bitcoin’s price action in the days leading to the Wednesday FOMC meeting showed characteristic volatility, struggling below $115,000 before briefly touching $116,800 for the first time in nearly a month. The cryptocurrency spent the weekend trapped in a tight range between $116,200 and $115,000, indicating trader caution ahead of the Fed decision.
Initially, the market appeared to have priced in the rate cut as BTC remained essentially stagnant immediately following the announcement. However, by Thursday morning, bitcoin gained traction and jumped to almost $118,000, marking a new multi-week peak before retreating to struggle above $116,000. Despite the volatility, BTC’s weekly performance showed only a modest 1% increase, significantly underperforming several major altcoins during the same period.
Altcoin Surges and ETF Developments
While Bitcoin showed relative stability, the altcoin market experienced dramatic movements. Binance Coin (BNB) made history by crossing the $1,000 psychological barrier for the first time, representing a major milestone for the exchange token. Avalanche (AVAX) delivered an impressive 20% weekly surge, while Hyperliquid (HYPE) reached nearly $59, establishing new all-time highs alongside BNB.
The week also brought significant ETF developments with mixed regulatory outcomes. The SEC postponed its decision on Truth Social’s Bitcoin ETF, continuing its pattern of delaying crypto-focused ETF approvals. However, REX-Osprey’s ETFs tracking Dogecoin (DOGE) and Ripple’s XRP went live for trading on Thursday and immediately saw massive demand, particularly for the XRP-linked product. These represented the first US spot ETFs for both cryptocurrencies and achieved record inflows despite the broader regulatory uncertainty.
Market Sentiment and Analyst Divergence
Market analysts presented sharply divided views on Bitcoin’s trajectory following the Fed decision. Former BitMEX CEO Arthur Hayes was particularly vocal on social media, warning that the US government would continue printing money regardless of rate cuts. He explained this monetary policy could significantly help BTC’s rally against the dollar, potentially driving the asset to $1 million, especially if Trump’s Fed nominee is appointed.
Conversely, other analysts warned of potential corrections, with some noting that Bitcoin’s ‘true top’ might have already been reached, drawing parallels to the 2021 market cycle. The strange divergence between gold’s continued rally to new all-time highs and Bitcoin’s stalled performance prompted questions about BTC’s safe haven status among traditional finance observers.
The broader cryptocurrency market maintained a total capitalization of $4.150 trillion with 24-hour trading volume of $144 billion. Bitcoin’s dominance held steady at 55.7%, while Ethereum (ETH) showed minimal movement at $4,520 (+0.04%) and XRP traded at $3.04 (+0.11%). Ethereum developers also announced the Fusaka release schedule with mainnet launch planned for December, providing fundamental development news alongside the market price action.
📎 Related coverage from: cryptopotato.com