Crypto Gains Slightly After Fed Rate Cut, But Rally Remains Fragile
The crypto market reacted positively but with limited momentum after the Federal Reserve cut its benchmark interest rate by 25 basis points for the third time this year, bringing the Fed funds rate to around 3.50%–3.75%. Bitcoin briefly surged above $93,000 before stabilizing in the $92,000s, indicating that most market participants had already priced in the decision. Expectations for a rate cut had been growing since the beginning of the week, so the post-announcement reaction was more of a continuation of the positive sentiment that had developed previously.
Movement in other major crypto assets tended to be mixed. Bitcoin and Ethereum recorded moderate gains, while several altcoins were flat or slightly weaker. Despite the less extreme price movements, volatility in crypto derivatives remained high: Bitcoin's implied volatility briefly reached around 67%, reflecting a market sensitive to changes in liquidity and leverage. On the other hand, institutional funds continue to flow, with tens of billions of dollars recorded in Bitcoin ETFs and corporate purchases, providing a medium-term "foundation" for the market, even though short-term prices remain volatile.
Looking ahead, the impact of the Fed's interest rate cut on crypto is considered more than a simple "low interest rates = crypto will rise." Some analysts have called this move a "hawkish cut" because the 2026 projections are less aggressive in cutting rates, and Fed officials themselves appear divided on the pace of future easing. This situation opens up the possibility of a "sell the news" scenario, where the initial rally is followed by a consolidation or correction phase if there are no strong new catalysts. For crypto investors and traders, the combination of slightly looser liquidity, uncertainty about the direction of policy in 2026, and regulatory risks make the prudent strategy now to continue capitalizing on the momentum, but with strict risk management while awaiting the next inflation and economic growth data.(cp)
Sumber: Newsmaker.id
