With a 25 basis point cut announced on September 17, the Federal Reserve took a measured approach that lowered short-term interest rates while keeping long-term bond yields steady. Analysts say this combination creates a favorable environment for risk assets without causing short-term market turmoil.
Impact on Cryptocurrencies
Historically low interest rates support demand for leading cryptocurrencies – Bitcoin (BTC) and Ethereum (ETH). With stable funding and a sustainable futures market base, interest could shift to high-quality, large-cap altcoins.
The leading factor in the sector remains the combination of trust and liquidity. When cash yields decline, capital often flows into innovation, and digital assets are among the main beneficiaries.
The Global Effect
A weaker dollar and looser monetary policy tend to ease financial conditions in Asia and emerging markets. This in turn attracts new cross-border participants. In the crypto sector, early signs are being reported through:
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increased use of stablecoins;
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deeper offshore markets;
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stable order books during active hours for Asia and Europe.
ETF flows and market depth remain key signals. If their resilience is confirmed at the end of the US and the beginning of the Asian sessions, market breadth should strengthen.
What's next?
The Fed's next steps will depend on inflation and labor market data. Another rate cut by the end of the year is possible, or a pause if the central bank judges that balance has been achieved. With consistent communication, cross-border participation in crypto markets is likely to continue to expand.
In this context, the infrastructure of large exchanges plays a key role - from providing liquidity in spot and derivatives markets to OTC services and institutional level custody.