$BTC
Fed Cuts Rates, Crypto Eyes the Moves
The Federal Reserve Fed made two 25 basis point rate cuts in late 2025 first in mid-September, then around 29 October, bringing the benchmark rate to roughly 3.75 % 4.00 %.
The moves loosen borrowing costs and increase liquidity conditions that often push investors toward risk-assets like crypto, as bonds and cash yield less.After the first cut, there was a small uptick: Bitcoin briefly rose above US$118,000, pushing overall crypto market cap up by a few percent.
The reduced yields on traditional assets make crypto including big names and altcoins more attractive, especially for yield-hungry investors.
But there’s a catch: ultra low rates didn’t return, and borrowing is still relatively costly compared with past cycles limiting leverage and dampening explosive rallies. In altcoins and decentralized finance DeFi sectors, lower interest rates can fuel fresh capital flows, but heightened volatility and sell the news risk remain real. For leveraged futures traders like many on Binance, the extra liquidity is a double edged sword: more opportunity, but also more risk of sharp corrections if sentiment falters. Looking ahead: if the Fed signals more cuts or continues liquidity-friendly policy or if macro headwinds ease crypto could get a firmer tailwind. If not, gains might stay shallow. For now, rate cuts provide a supportive macro backdrop for crypto but they don’t guarantee a bull run. Market structure, sentiment, regulation, and global events will still steer the final outcome.