Thursday, the market value of the World Cripto sector increased by 2% to 4.2 dollars, support for the price of Bitcoin currency (Bitcoin) around $ 118,000 after the federal has completed the first reduction in interest rates this year.
Nevertheless, the gains were limited, because investors evaluated the tone of future movements of the central bank of monetary policy, because the price of the Bitcoin currency increased by $ 117,426, and the price of the Ethereum-Eth currency reached the currency (Ripple-XRP) strong high of 2.9%.
For his part, Federal President Jerome Powell described the reduction in the interest rate of a quarter of percentage on Wednesday as a step to manage the risks, stressing that political decision -makers are not in a wheel to accelerate the facilitation course in cash, and his comments have reduced expectations on more extensive reductions, which limited the enthusiasm to dangerous assets.
Fed lowers a quarter level, the first 2024 https://t.co/hogiohb0wf
– CNBC (@CNBC) September 17, 2025
Merchants expect the federally to reduce the interest rate, which leaves a small space for any sudden increase
The Federal Open Markets Committee voted with 11 votes for a vote in favor of reducing the loan rate for a range between 4.00% and 4.25%, while the only opposition sound is the new governor Stephen Miran, who demanded a reduction in the interest rate of half a pourcentage.
The merchants of this stage have prepared significantly, because the future markets – according to the federal federal services tool, showed a probability of 96% to reduce the interest rate by 25 basis, which makes the decision generalized.
Thanks to this pre -motion, a large part of the impact of the reduction was previously calculated and this appeared in prices, which created an environment that analysts described as “buying rumor, selling when confirming news”.
The federal resolution on the interest rate creates favorable conditions for the Craqueto market, while continuing to warn traders
Andrew Forson, president of DEFI Technologies, said that low borrowing costs will finally lead to more investments towards digital assets, adding: “The low cost of capital indicates the flow of more capital to the digital asset sector because the risk rate required for money has become less.” He explained that mortgage products and project the products explained by Bocine can represent attractive alternatives to traditional obligations, as it provides both yields and growth in value.
Although the interest rate has been reduced, the digital currency markets have maintained its stability, with the stability of the volume of open -end contracts of Bitcoin and the lack of large waves of liquidation after the federal decision, because the analysts mentioned the tone of Powell and the economic data to come as major factors that traders can take into account before opening greater agreements.
Powell’s prudence tone reduces the immediate impact of the federal decision on the Cripto markets
Previous events indicate that the increase in digital currencies after reducing interest rates often takes a long time; When the Federal reduced the interest rate in December 2024, the price of Bitcoin increased for a short period of 5% before seeing relatively stability, while lasting gains have appeared up to several weeks.
Market monitors suggest that the same scenario is repeated this time, because the insistence of Federal President Jerome Powell on the adoption of a prudent approach in addition to uncertainty surrounding inflation and growth has remained low in short -term volatility, even with an improvement in appetite for investors.
For his part, Tom Li de Bitmin expected this week that Bitcoin and Ethereum will reach “huge gains” in the next three months if the federal continues in monetary facilitation, and his point of view reflects wider expectations than sensitive liquidity assets will excel when the facilitation cycle speeds.
Until now, the digital currency sector has interacted with the federal decision with a degree of reserve, because merchants are expecting signals from the central bank meeting in October to determine whether a step on Wednesday represents a broader or more unique political transformation.
The position increased the market value of the CRIPTO sector by 2% with the price approaching Bitcoin-BTC to $ 118,000 after the Federal reduced the interest rate appeared first on Arab Cryptonews.
