Fed Rate Cut Boosts Crypto: Bitcoin Holds $90K, ZEC Surges 18%

The week’s financial narrative was dominated by the Federal Open Market Committee’s (FOMC) decision to reduce interest rates by another 25 basis points. This anticipated move, however, did not translate into a straightforward bullish catalyst for Bitcoin. In the days leading to the announcement, BTC exhibited classic volatility, being rejected multiple times at the $94,000 level before a slide below $88,000 after losing the $90,000 support. Bulls quickly reclaimed that crucial level, driving the asset to a multi-week peak of $94,500 just a day before the Fed’s decision.

Following the rate cut, Bitcoin briefly retested the $94,500 resistance but faced another rejection, leading to a sharp retracement to $89,500. Once again, buyer defense emerged, propelling BTC back above $92,000 by the week’s end. This turbulent price action resulted in a modest 1.1% weekly gain, showcasing the asset’s struggle to break decisively higher despite favorable macro conditions. The broader market data reflected a steady environment, with total cryptocurrency market capitalization at $3.230 trillion and Bitcoin’s dominance holding firm at 57%.

While Bitcoin stabilized, altcoin performance was mixed. Ethereum (ETH) posted a solid 3.6% gain, whereas Ripple (XRP) dipped slightly by 1.3%. The standout performer was Zcash (ZEC), which surged over 18% weekly to $460, reigniting its late-2024 rally. In contrast, Hyperliquid (HYPE) slumped by more than 7%, highlighting the divergent paths within the altcoin universe during a week of macro-driven trading.

Beyond price charts, the week delivered significant regulatory and institutional milestones. The long-running saga of Terra’s collapse reached a pivotal juncture as founder Do Kwon was sentenced to 15 years in a U.S. prison. This legal closure, coming more than three years after the ecosystem’s implosion, marks one of the most substantial accountability actions in cryptocurrency history, serving as a stark reminder of the sector’s ongoing maturation and the consequences of malfeasance.

Simultaneously, traditional and crypto-native institutions continued to deepen their embrace of digital assets. In a symbolic gesture, a statue honoring Bitcoin’s pseudonymous creator, Satoshi Nakamoto, was unveiled at the New York Stock Exchange (NYSE), described by the exchange as representing “shared ground between emerging systems and established institutions.” More concretely, corporate giant Strategy executed a massive Bitcoin purchase, spending over $960 million to acquire 10,624 BTC at an average price of $90,615. This acquisition ballooned its corporate treasury holdings to a staggering 660,624 BTC, reinforcing institutional conviction at current price levels.

The infrastructure supporting cryptocurrency adoption saw substantial expansion. In a major move for content creator monetization, YouTube enabled stablecoin payments via PayPal’s PYUSD. Notably, PayPal’s head of crypto clarified that the payment giant would handle all digital asset operations, with YouTube itself not directly managing crypto, illustrating a model for large platforms to integrate digital currencies without deep technical immersion.

Accessibility took a leap forward as Coinbase, the largest U.S.-based exchange, launched Solana (SOL) decentralized exchange (DEX) trading within its application. This integration grants over 100 million Coinbase users immediate access to tokens launched on the Solana network, bypassing traditional listing delays and significantly lowering barriers to entry for retail investors exploring the Solana ecosystem.

The push for regulated growth was highlighted in Asia, where HashKey Holdings Limited filed for an Initial Public Offering (IPO) in Hong Kong. By opening subscriptions to local and international investors, HashKey aims to become the first publicly listed cryptocurrency exchange in the city, aligning with Hong Kong’s strategic bet on a regulated digital asset future. This development, alongside the corporate, legal, and platform news, frames a cryptocurrency sector navigating a critical phase of integration, regulation, and volatile, macro-influenced price discovery.