- Federal Reserve cuts rates by 25 basis points.
- Increased liquidity fosters higher trading activity in crypto markets.
- Significant market reactions in Bitcoin and Ethereum.
The Federal Reserve announced a rate cut of 25 basis points in September 2025, as communicated by former St. Louis Fed Chair James Bullard.
The decision aims to stabilize employment, influencing major cryptocurrencies like Bitcoin and Ethereum, with expected increases in DeFi platform activities.
Federal Rate Cut Spurs Crypto Market Activity
Former St. Louis Fed Chair James Bullard announced the Federal Reserve’s rate cut in September 2025, citing concerns over rising inflation. The FOMC decision reduced the federal funds rate by 25 basis points to a range of 4.00% to 4.25%. This adjustment, described as part of a ‘risk-management cut,’ reflects the institution’s strategic focus. Key implications include heightened investor interest in risk assets like cryptocurrencies, as lower rates drive shifts towards speculative investments. Bullard’s influence and communication with Treasury Secretary Janet Yellen underscore the broader policy priorities of employment stability over inflation concerns. Market reactions to the rate cut were significant, with increased activity in major cryptocurrencies such as Bitcoin and Ethereum. Federal Reserve statements highlight the continuity of monetary policy strategies, while cautious optimism pervades across financial sectors.
Did you know? Historically, Federal Reserve rate cuts have triggered significant inflows into cryptocurrencies as investors seek higher returns outside traditional fiat investments.
James Bullard, Former St. Louis Fed Chair, stated: “The Federal Reserve will implement a rate cut in September.”
Bullard’s Influence and Bitcoin Market Shifts
Did you know? Historically, Federal Reserve rate cuts have triggered significant inflows into cryptocurrencies as investors seek higher returns outside traditional fiat investments.
According to CoinMarketCap, Bitcoin (BTC) is trading at $111,435.28, with a market capitalization of $2.22 trillion and a 24-hour trading volume of $60.33 billion. Bitcoin’s price declined by 1.81% in the past 24 hours but experienced a 3.94% increase over the last 90 days. With a total supply of 21 million, its current circulating supply stands at 19,926,050. The trade volumes have increased substantially, reflecting growing interest from investors. Coincu research team notes that the rate cut could lead to increased liquidity across blockchain platforms, with a surge in investments towards decentralized finance. Regulatory adjustments may further influence market volatility, while technological advances promise potential growth and innovation in response to changing monetary policies.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:21 UTC on September 25, 2025. Source: CoinMarketCapFederal Reserve announces monetary policy decisions on September 17, 2025.
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Source: https://coincu.com/markets/federal-reserve-september-2025-rate-cut/
