Fed Rate Cut Fails To Boost Crypto Markets Significantly

Published Sep 18, 2025

1 min read

Fed Cuts Rate to 3.50–3.75%, Crypto Unfazed

Summary

Crypto markets remain stable post Fed rate cut, lacking historical surge.

The Federal Reserve’s rate cut on September 2025, lowering the benchmark to 3.50–3.75%, did not lead to a significant surge in cryptocurrency prices, leaving markets subdued.

Despite historical trends linking rate cuts with crypto upticks, the September 2025 announcement saw muted market reactions, with limited impact on key cryptocurrencies and DeFi protocols.

The Federal Reserve’s rate cuts in September 2025 saw the benchmark lowered to 3.50–3.75%. Historically, such macro conditions have benefited digital assets significantly; however, the post-announcement impact on Bitcoin and major altcoins remained muted.

Despite favorable macro conditions, the recent rate cut did not lead to a substantial surge in key cryptocurrencies. Bitcoin’s price action stayed relatively unchanged, and only a few high-beta tokens showed increased volatility. “We anticipate a positive relationship between the rate cuts and Bitcoin prices; however, the immediate market reaction has been muted.” — Larry Fink, CEO, BlackRock

Modest Movement Post-Fed Cut, Institutional Reaction Limited

Market participants expressed caution following the Fed’s actions, observing a modest market movement rather than a surge. Major institutional investors like BlackRock, and mining entities had no significant reactions to the latest announcements.

While historical trends suggest rate cuts fuel Bitcoin increases, this cut only offered a slight growth in cryptocurrency values. On-chain metrics remain steady, showcasing traders’ cautious stance amidst unclear macro signals.

Crypto’s Tepid Response Compared to 2020 Surge

In past instances, like the 2020 pandemic rate cuts, Bitcoin saw a remarkable surge from $4,000 to nearly $30,000 under improved liquidity conditions. Such contrasts highlight the complex dynamics of crypto responses to monetary easing.

Expert analysis indicates that while macro easing typically supports risk-on appetite, current macro uncertainties and steadiness in on-chain activity can dampen potential growth, suggesting more bullish signals are needed for broad rallies.

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