In a notable shift, the cryptocurrency market experienced a decline on Wednesday as Bitcoin dipped near the $115,000 range following the Federal Reserve’s announcement of a 25 basis point interest rate cut, marking the first such adjustment of the year.
As of the afternoon trading session, Bitcoin (BTC) was priced around $115,300, reflecting a decrease of almost 1% over the previous 24 hours. Meanwhile, Ethereum (ETH) remained relatively stable, trading at approximately $4,450. Other major cryptocurrencies were also affected, with XRP and Solana (SOL) each falling by 1%, priced at $3.02 and $235, respectively. Binance Coin (BNB) held steady at $954.
The overall cryptocurrency market capitalization took a slight hit, decreasing by 0.8%, landing at $4.1 trillion. Bitcoin continues to dominate the market with a share of 56.1%, while Ethereum’s market presence accounts for 13.2%, as reported by CoinGecko.
Throughout the last 24 hours, the market saw considerable liquidations, totaling nearly $175 million across various crypto positions. This included about $79 million in long positions and $90 million in short positions, according to data provided by Coinglass. Ethereum led these liquidations with over $42 million, followed closely by assorted altcoins and Bitcoin, both registering around $29 million in liquidations.
In a related development, spot Bitcoin exchange-traded funds (ETFs) have shown strong performance, attracting $292 million on September 16. This marks their seventh consecutive day of positive inflows, bringing the total to nearly $2.9 billion. In contrast, spot Ethereum ETFs experienced outflows of $61.7 million, breaking a five-day inflow streak that had cumulatively reached $1.09 billion, according to analytics firm SoSoValue.
The muted reactions in the cryptocurrency market can be attributed to traders processing the implications of the Federal Reserve’s interest rate decision, along with their outlook on future monetary policies. Officials hinted that two more rate cuts could be anticipated later this year. Kyle Chassé, CEO of MV Global and Founder of PAID, noted, “A 25 basis point cut is most likely, and if that happens, we could see a brief pullback because that outcome is already priced into the market.”
This recent Fed decision comes amidst mixed economic signals, where slowing job growth contrasts against persistently high inflation rates in certain sectors, leaving monetary policymakers divided on the extent of necessary rate adjustments. Adding to the complexity of the situation are external pressures from figures such as President Donald Trump, who has advocated for significant rate cuts over the past several months. Additionally, organizational changes within the Fed have further contributed to the prevailing uncertainty in the financial landscape.
As the crypto market navigates these turbulent waters, traders and investors will be closely monitoring how these developments impact market dynamics in the weeks to come, especially in light of the Federal Reserve’s policy trajectory and its implications for cryptocurrency valuations.
