Fed's Quarter-Point Rate Cut Anticipated: Crypto Markets Look to Next Steps for a Surge
On September 17, 2025, the U.S. Federal Reserve implemented its first rate decrease since December 2024, lowering rates by 25 basis points. However, the crypto markets responded with little excitement, as traders had generally anticipated this move in advance and already priced it into their strategies.
Although the immediate reaction was subdued, industry observers emphasized the long-term impact for cryptocurrency markets. Julio Moreno from CryptoQuant suggested that continued rate reductions by the Fed could ignite a rally in the final quarter of the year. Meanwhile, Brian Huang at Glider stressed that broader economic indicators—like employment numbers and inflation—will continue to shape crypto’s trajectory Crypto Markets Fail To Surge Following Fed Rate Cut Announcement [ 1 ]. Doug Colkitt from Fogo remarked that the central bank’s decisions remain a major influence: “When Powell reacts, risk assets respond, and Bitcoin is often the most reactive.” Thomas Perfumo of Kraken agreed, noting that both market participants and the Fed have similar expectations for rate cuts through 2026 Crypto Markets Fail To Surge Following Fed Rate Cut Announcement [ 1 ].
The issue of the Fed’s independence, especially with a change in leadership expected in 2026, was also raised. Greg Magadini of Amberdata cautioned that the central bank’s ability to set policy without interference is crucial for assets like Bitcoin and gold. At the same time, innovation within the crypto sector was seen as essential for long-term growth, with Colkitt stating, “Macroeconomic conditions provide the backdrop, but it’s crypto innovation that powers growth. While rate cuts may trigger the next phase, sustained adoption is what maintains momentum.” Crypto Markets Fail To Surge Following Fed Rate Cut Announcement [ 1 ]
Nevertheless, significant risks persist. Inflation levels are still above the Fed’s 2% objective, and although the labor market shows early signs of slowing, deteriorating economic data could prompt the Fed to reverse course.
The altcoin sector, which hit an unprecedented $1.72 trillion valuation in 2025, is also exposed to volatility. While declining rates could channel more investment into riskier assets, experts warned that altcoins are generally more prone to sharp corrections than Bitcoin. The Clarity Act, which seeks to deliver clearer regulations for crypto, was identified as a possible catalyst for greater institutional participation and growth of real-world asset (RWA) offerings. Still, challenges such as limited liquidity and broader economic headwinds—including fears of stagflation—could restrict gains for altcoins Fed Rate Cut 2025: What It Means for Crypto Investors [ 3 ].
Retail participants were encouraged to stick to disciplined investment approaches, such as diversifying portfolios, managing leverage carefully, and staying alert to Fed statements. The tone Jerome Powell adopts during post-meeting press briefings and any subsequent policy shifts will remain key factors shaping investor attitudes. As one market analyst summed up, “The most significant influence on asset prices is the Fed’s ability to act independently,” a point of uncertainty as the central bank’s responsibilities evolve in a rapidly shifting economy Crypto Markets Fail To Surge Following Fed Rate Cut Announcement [ 1 ].
