- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Fed lowers interest rate; minimal crypto effect.
- No notable market reaction in major crypto assets.
The Federal Reserve, led by Jerome H. Powell, implemented its first rate cut of 2025 in September, with little immediate effect on leading cryptocurrencies such as Bitcoin and Ethereum.
The muted crypto market response highlights a shift in sensitivity to macroeconomic changes, marking a departure from previous patterns where rate cuts triggered increased volatility in cryptocurrencies.
The Federal Reserve announced its first interest rate cut of 2025, reducing it to 4–4.25%. This move had a negligible effect on leading cryptocurrencies like Bitcoin and Ethereum. The decision was led by the Federal Open Market Committee.
Chaired by Jerome H. Powell, the committee unrolled further easing signals. Despite this, crypto assets like BTC and ETH showed marginal price changes as no direct statements about cryptos were made by Fed officials. According to Powell, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”
Crypto markets typically respond to such macroeconomic shifts, but current reactions remain muted. No significant changes in Total Value Locked or liquidity performances were registered across top crypto exchanges or block explorers.
Historically, rate cuts often trigger volatility in risk assets, but the September 2025 rate cut yielded no substantial changes. Even DeFi platforms exhibited stability with no statistically notable reactions in governance tokens.
No direct impact was reflected in Bitcoin or Ethereum analytics, aligning with a trend of muted market reaction. Crypto experts and major industry figures have not publicly commented on the implications of the Fed’s recent decision.
Future implications remain inconclusive without major market shifts. Past cycles experienced sharp impacts, but current data and expert analysis indicate minimal direct correlation between the Fed’s actions and crypto markets.
