The crypto market capitalization fluctuated between $4 trillion and $4.12 trillion as traders processed the Federal Reserve’s anticipated rate cut and the forward guidance revealed on Wednesday afternoon. Bitcoin surged to a peak of $117,906, while Ethereum reached a high of $4,644. Both cryptocurrencies have experienced a slight pullback. The Federal Reserve, in a near-unanimous decision, has lowered the target range for the federal funds rate by a quarter percentage point to 4-4.25 percent.
The Federal Open Markets Committee pointed to the moderation in economic activity growth during the first half of the year, the deceleration in job gains, the slight uptick in the unemployment rate which still remains low, and the inflation that has increased and stays somewhat elevated, all contributing to the shift in the balance of risks that underpins its decision. Stephen I. Miran, a recent addition to the Federal Reserve Board, expressed a preference for reducing the target range for the federal funds rate by half a percentage point. The Federal Reserve has revised its expectations for GDP growth in 2025, now forecasting a rate of 1.6 percent, up from the 1.4 percent projected in June. The unemployment rate projection remains at 4.5 percent, while the PCE-inflation projection is held steady at 3 percent.
In the Summary of Economic Projections released in June, the Fed projected that the median federal funds rate would decline to 3.9 percent by 2025. The Fed now expects the rate to decrease to 3.6 percent, suggesting two additional quarter-percentage cuts in 2025. The Fed is anticipated to initiate a robust trajectory of monetary easing in the near future. The Fed has adjusted its forecast, now estimating a median federal funds rate of 3.4 percent for 2026, down from the 3.6 percent it anticipated in June. The median federal funds rate for 2027 is now projected at 3.1 percent, a decrease from the 3.4 percent forecasted in the previous quarter. Reports indicates an 89.8 percent probability that the Fed’s target rate will decrease by a quarter percentage point to a range of 3.75-4.00 percent during the October FOMC meeting. The anticipated reduction in interest rates has enhanced sentiment within the crypto market. The overall crypto market capitalization has risen to $4.1 trillion, up from $4.05 trillion just a day prior and $3.94 trillion a week earlier. In a notable market shift, over 70 of the top 100 cryptocurrencies are experiencing overnight gains exceeding one percent, while just 5 are facing losses greater than one percent.
The Fed’s decision has sparked a range of reactions across global financial markets. The six-currency Dollar Index is presently showing a 0.14 percent increase, trading at 97.01. The index wrapped up at 96.87 on Wednesday, following a previous close of 96.63 on Tuesday. Gold Futures set for December delivery have dipped 0.56 percent overnight, now standing at $3,696.90 per troy ounce. The closing price was $3,703.02 on Wednesday and $3,725.10 on Tuesday. On Wednesday, Bitcoin and Ethereum Spot ETF products in the U.S. experienced net outflows. On Wednesday, Bitcoin-based Spot ETF products in the U.S. experienced outflows totaling $51 million, contrasting sharply with the inflows of $292 million recorded just a day prior. On Wednesday, Ethereum-based Spot ETF products experienced net outflows of $2 million, a notable decrease from the $62 million in net outflows recorded the day before. The crypto market sentiment received a boost thanks to regulatory actions from the U.S. Securities and Exchange Commission. On Wednesday, the SEC greenlit rule modifications proposed by three national securities exchanges, enabling them to implement generic listing standards for exchange-traded products that encompass spot commodities, which notably includes digital assets.
In line with the regulations, exchanges are permitted to list and trade Commodity-Based Trust Shares that comply with the established generic listing standards, bypassing the need to submit a proposed rule change to the Commission beforehand. SEC Chairman Paul S. Atkins stated that the changes aim to maximize investor choice, foster innovation by streamlining the listing process, reduce barriers to access digital asset products, and ensure that America’s capital markets continue to be the premier destination for engaging in the cutting-edge innovation of digital assets. Bitcoin is presently priced at $117,330.08, showcasing overnight gains of 0.43 percent and weekly gains of 2.8 percent. The current price of the cryptocurrency stands at 6 percent below its all-time high of $124,457.12, which was recorded on August 14. Ethereum experienced a notable rally of 2.1 percent overnight, bringing its trading price to $4,603.70. Weekly gains have surged to 3.8 percent. Ether is currently trading at a price that is 7 percent lower than its all-time high of $4,953.73, which was reached on August 25, 2025.
XRP, currently holding the 3rd rank, experienced a rally of 2.7 percent overnight, bringing its trading price to $3.1, which is approximately 19 percent below its all-time high. 5th ranked BNB surged 5.2 percent overnight, now trading at $1,003.13. BNB has reached a new all-time high of $1,005.29 recently. The price of 6th ranked Solana surged by 4.8 percent overnight, reaching $246.95. Dogecoin, currently sitting at the 8th rank, saw a surge of 5.5 percent overnight and is now trading at $0.2816. DOGE, despite experiencing losses exceeding 10 percent, remains the top-ranking cryptocurrency to trade with losses on a year-to-date basis. TRON, now positioned 9th overall, saw a 1.1 percent increase overnight and is currently trading at $0.3452. Cardano, currently holding the 10th rank, experienced a notable surge of 4.7 percent overnight, bringing its trading price to $0.9169.
MemeCore, currently sitting at the 44th rank, led the overnight gains in the top 100 cryptocurrencies, achieving a remarkable increase of 16.5 percent. The 50th ranked Pudgy Penguins has seen an impressive increase of 12.1 percent over the last 24 hours. Monero, currently sitting at the 27th rank, managed to outperform its overnight losses among the top 100 cryptocurrencies, experiencing a decline of 6.2 percent. Zcash, currently sitting at the 99th rank, experienced a decline of 2.9 percent.