ETFs for XRP and DOGE Debut While Fed Lowers Rates by 25 BPS, Crypto Market Awaits Powell’s Upcoming Decision

The U.S. Federal Reserve’s move to lower interest rates by 25 basis points on September 17, 2025 led to swift responses throughout the digital asset sector.

(BTC-USD) surged above $117,000 ahead of the Federal Open Market Committee (FOMC) decision, according to market data, as traders anticipated the outcome. However, after the official announcement, Bitcoin briefly dropped to $115,600, a dip that analysts attributed to the market’s prior expectation of the rate cut. The FedWatch tool showed a 96% chance for a 25 basis point reduction, while Polymarket traders echoed this sentiment with a 93% probability.

Ethereum (ETH), the second-largest digital currency, also experienced volatility tied to the FOMC event. Historical trends from earlier FOMC meetings reveal that ETH typically endures short-term downward pressure after policy decisions, with a 1.5–2.3% price drop recorded in the three months before this event. Yet, recent on-chain data and technical analysis suggested the possibility of an upward breakout. ETH climbed past $4,600, overcoming a significant resistance level and indicating strong upward momentum. Market experts pointed to the potential for ETH to rally towards $6,000 soon, fueled by robust ETF inflows, a shrinking exchange supply, and favorable chart setups. The presence of a bull flag pattern on the daily chart reinforced this outlook, projecting a target price of $6,150 based on the pattern’s measured move.

XRP and

(DOGE) were poised for significant development as the first U.S. spot ETFs for these cryptocurrencies were set to launch on September 18. The REX-Osprey ETF (XRPR) and Dogecoin ETF (DOJE) were created to provide investors with direct access to XRP and , ensuring that at least 80% of assets are allocated to their respective cryptocurrencies. These ETFs were structured under the 1940 Investment Company Act, aiming to boost transparency and safeguard investors. This development represented a notable regulatory change, as previous ETF proposals for XRP and Dogecoin were mostly based on derivatives.

Analysts pointed out that these launches reflected increasing institutional appetite for alternative cryptocurrencies and highlighted the growing sophistication of crypto-focused investment products. As the ETFs neared their introduction, price action for XRP and Dogecoin remained steady, with no significant volatility detected in the 24 hours after the Fed’s announcement.

Across the wider market, attention turned to the Federal Reserve’s guidance for the future. While the 25 basis point cut had been widely anticipated, market participants were closely monitoring comments from Federal Reserve Chair Jerome Powell after the meeting for hints about future policy that could move markets. Swissblock, a private wealth advisory firm, highlighted that Powell’s statements would be especially influential for short-term price swings, particularly in more volatile assets like Bitcoin and Ethereum. Some analysts suggested that the Bitcoin Risk Index could be an important indicator in gauging whether the current bullish trend would persist or if a correction was on the horizon.

As investors adjusted to the Fed’s latest move, attention shifted toward the rollout of the new XRP and Dogecoin ETFs and the possibility of additional rate reductions in 2025. Both traders and investors remained vigilant, tracking macroeconomic conditions and blockchain data to anticipate the next major moves in this rapidly changing sector.