Crypto Markets Surge on Fed Rate Cut Signals
Cryptocurrencies dismissed the renewed trade tensions between the U.S. and China, instead concentrating on another rate cut by the Federal Reserve. On Tuesday, Chair Powell recognized that the increasing downside risks to employment have altered the Fed’s evaluation of the balance of risks, strengthening expectations for a rate cut. The overall crypto market capitalization saw an increase of nearly 2 percent overnight, following the remarks made by the Fed Chair. Positive flows to Bitcoin and Ethereum Spot ETF products in the U.S., along with the dollar’s retreat, bolstered sentiment. During the 67th Annual Meeting of the National Association for Business Economics, Federal Reserve Chairman Jerome Powell expressed a tone that was more dovish than the markets had expected. In his speech titled “Understanding the Fed’s Balance Sheet,” Jerome Powell recognized the tension that exists between the Fed’s objectives regarding employment and inflation. Powell stated that the available data and surveys consistently indicated that increases in goods prices were mainly a result of tariffs, rather than wider inflationary pressures. He observed that while short-term inflation expectations had broadly risen this year, the majority of longer-term expectation indicators continued to align with the Fed’s 2 percent target.
On the labor front, Powell remarked that payroll gains have significantly slowed, and the risks to employment on the downside have seemingly risen. The Fed Chief pointed to available evidence indicating that layoffs and hiring are both low, while households’ perceptions of job availability and firms’ views on hiring difficulty are continuing to decline. The Fed’s apprehensions regarding the weakening labor market and the anticipation that this concern would prompt the Fed to lower rates enhanced market sentiment. Gold has surged; stocks have experienced a rally while the Dollar has declined. Gold Futures for December settlement are currently trading at $4,220.06 per troy ounce, reflecting overnight gains of 1.4 percent. Gold Futures reached an unprecedented peak of $4,235.69 earlier in the day’s trading session. The 6-currency Dollar Index, which assesses the dollar’s strength against a selection of 6 currencies, currently stands at 98.84, compared to 99.05 at the previous close. The index has decreased by 0.21 percent compared to the previous close. Expectations for a Fed rate cut remain steadfast. Reports currently indicates a 95.7 percent expectation of a quarter percentage rate cut in the upcoming review, scheduled for two weeks from now.
Only 4 of the top 100 cryptocurrencies have experienced overnight losses exceeding one percent. Simultaneously, approximately 75 of the leading 100 cryptocurrencies have surged over 1 percent in the past night. The rebound has elevated crypto market capitalization by 1.94 percent overnight, reaching $3.86 trillion. The 24-hour trading volume has, however, decreased by half a percent overnight to $245 billion. Bitcoin is presently valued at $112,742.42, reflecting overnight gains of 0.76 percent alongside weekly losses of 8 percent. In the last 24 hours, BTC fluctuated between $113,622.38 and $110,029.49. The cryptocurrency is presently trading approximately 11 percent below its all-time high of $126,198.07 reached on October 7. On Tuesday, Bitcoin-based Spot ETF products in the U.S. experienced inflows amounting to $103 million, contrasting with net outflows of $326 million recorded on Monday. The Fidelity Wise Origin Bitcoin Fund has achieved significant inflows, totaling $133 million. Ethereum experienced a notable increase of 3.8 percent overnight, now trading at $4,157.74. Ether is currently trading at a price that is 16 percent lower than its all-time high of $4,953.73, which was recorded on August 25, 2025. The trading range over the past 24 hours fluctuated between $4,213.86 and $3,895.97. On Tuesday, Ethereum-based Spot ETF products saw net inflows of $236 million, in contrast to the net outflows of $429 million recorded on Monday. The Fidelity Ethereum Fund has reached a significant milestone, attracting inflows of $155 million.
BNB, currently ranked 4th, has experienced a decline of 1.2 percent overnight and has fallen more than 9 percent over the past week. It is presently trading at $1,191.61, approximately 13 percent lower than the all-time high of $1,370.55 reached on October 13. The fifth-ranked XRP experienced a 1.6 percent increase overnight, bringing its trading price to $2.50, which is approximately 35 percent lower than its all-time high of $3.84 reached on January 4, 2018. The price of 6th ranked Solana surged over 5 percent overnight, reaching $206.42. The 8th ranked Dogecoin experienced a 2 percent increase overnight and is presently trading at $0.2044. DOGE has experienced losses of 35.3 percent, making it the highest-ranking cryptocurrency to report losses on a year-to-date basis. TRON, ranked 9th overall, gained 2.8 percent overnight and is currently trading at $0.3206. Cardano, currently ranked 10th, experienced a 2.3 percent increase overnight, bringing its trading price to $0.6996. Plasma, currently ranked 79th, led the overnight gains among the top 100 cryptocurrencies, achieving an impressive increase of 19.9 percent. Zcash, currently ranked 29th, experienced an increase of nearly 16 percent overnight. The 86th ranked Artificial Superintelligence Alliance led the way in recovering from overnight losses among the top 100 cryptocurrencies, despite experiencing a decline of over 8 percent. MYX Finance, currently ranked 94th, has experienced a decline of 6.1 percent over the last 24 hours.
