WASHINGTON (dpa-AFX) - Crypto market capitalization oscillated between $4 trillion and $4.12 trillion as markets digested the Federal Reserve's widely expected rate cut and forward guidance unveiled on Wednesday afternoon. In the aftermath of the FOMC announcements, Bitcoin rose to a high of $117,906 while Ethereum touched a high of $4,644. Both the cryptocurrencies have since retreated mildly.
The Federal Reserve, in a near-unanimous move lowered the target range for the federal funds rate by quarter percentage point to 4-4.25 percent. The Federal Open Markets Committee cited the moderation in growth of economic activity in the first half of the year, the slowing job gains, the unemployment rate that has edged up but remains low, the inflation that has moved up and remains somewhat elevated as well as the consequent shift in the balance of risks in support of its decision. Stephen I. Miran, who recently joined the Federal Reserve Board preferred to lower the target range for the federal funds rate by half percentage point.
The Federal Reserve now expects the GDP growth in 2025 to record 1.6 percent versus 1.4 percent that it had projected in June. The unemployment rate projection of 4.5 percent and the PCE-inflation projection of 3 percent have however been retained.
In the Summary of Economic Projections made in June, the Fed had anticipated the median federal funds rate to fall to 3.9 percent in 2025. Now the Fed anticipates the same to fall to 3.6 percent, implying two more quarter-percentage rate cuts in 2025.
The Fed is also seen embarking on a firm pace of monetary easing going forward. The Fed has now projected a lower median federal funds rate of 3.4 percent in 2026 versus the 3.6 percent it projected in June. Likewise, the median federal funds rate for 2027 has been projected to be 3.1 percent versus the 3.4 projected in the previous quarter.
The CME Fedwatch tool now shows the likelihood of Fed's target rate falling quarter percentage to 3.75-4.00 percent in the October FOMC at 89.8 percent. The expected easing in interest rates has boosted crypto market sentiment. Overall crypto market capitalization has increased to $4.1 trillion from $4.05 trillion a day ago and $3.94 trillion a week ago. While more than 70 of the top 100 cryptocurrencies are trading with overnight gains of more than a percent, only 5 are trading with overnight losses of more than a percent.
The Fed's decision has evoked mixed sentiment in global financial markets.
The six-currency Dollar Index is currently trading 0.14 percent higher at 97.01. The index had closed at 96.87 on Wednesday and 96.63 on Tuesday.
Gold Futures for December settlement has slipped 0.56 percent overnight to $3,696.90 per troy ounce. The same had closed at $3,703.02 on Wednesday and at $3,725.10 on Tuesday.
Though Wall Street had closed on a mixed note on Wednesday, currently Wall Street futures are trading in mildly positive territory. Ten-year sovereign bond yields are currently reflecting a mixed pattern.
Bitcoin and Ethereum Spot ETF products in the U.S. witnessed net outflows on Wednesday. Bitcoin-based Spot ETF products in the U.S. witnessed outflows of $51 million on Wednesday versus inflows of $292 million a day earlier. Ethereum-based Spot ETF products recorded net outflows of $2 million on Wednesday versus net outflows of $62 million on the previous day.
Crypto market sentiment was also bolstered by regulatory action by the U.S. Securities and Exchange Commission. The SEC on Wednesday approved rule changes by three national securities exchanges to adopt generic listing standards for exchange-traded products that hold spot commodities, including digital assets.
Accordingly, the exchanges can list and trade Commodity-Based Trust Shares that meet the requirements of the approved generic listing standards without first submitting a proposed rule change to the Commission. According to SEC Chairman Paul S. Atkins, the changes are expected to maximize investor choice, foster innovation by streamlining the listing process, reduce barriers to access digital asset products as well as ensure that America's capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets.
Bitcoin is currently trading at $117,330.08 recording overnight gains of 0.43 percent and weekly gains of 2.8 percent. The cryptocurrency's current price is 6 percent below the all-time-high of $124,457.12 recorded on August 14.
Ethereum rallied 2.1 percent overnight to trade at $4,603.70. Weekly gains have increased to 3.8 percent. Ether's current trading price is 7 percent below its all-time-high of $4,953.73 recorded on August 25, 2025.
3rd ranked XRP also rallied 2.7 percent overnight to trade at $3.1, around 19 percent below the cryptocurrency's all-time high.
5th ranked BNB jumped 5.2 percent overnight at its current trading price of $1,003.13. BNB touched a fresh all-time high of $1,005.29 just a while ago.
The price of 6th ranked Solana also increased 4.8 percent overnight to $246.95.
8th ranked Dogecoin added 5.5 percent overnight and is currently changing hands at $0.2816. With losses of more than 10 percent, DOGE is still the highest-ranking crypto to trade with losses over the year-to-date horizon.
TRON ranked 9th overall added 1.1 percent overnight and is currently changing hands at $0.3452.
10th ranked Cardano surged 4.7 percent overnight to trade at $0.9169.
44th ranked MemeCore (M) topped overnight gains among the top 100 cryptocurrencies with a gain of 16.5 percent. 50th ranked Pudgy Penguins (PENGU) followed with gains of 12.1 percent in the past 24 hours.
27th ranked Monero (XMR) topped overnight losses among the top 100 cryptocurrencies with a decline of 6.2 percent. 99th ranked Zcash (ZEC) also declined 2.9 percent.
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