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Bitcoin and Ether Set to Soar as Fed Rate Cut Looms—Downside Fears Vanish

Bitcoin and Ether Set to Soar as Fed Rate Cut Looms—Downside Fears Vanish

Author:
Coindesk
Published:
2025-09-15 05:29:55
15
2

What's Next for Bitcoin and Ether as Downside Fears Ease Ahead of Fed Rate Cut?

Fed rate cuts ignite crypto rally—Bitcoin and Ether shrug off bearish sentiment.

Market Momentum Shifts

Traders ditch defensive plays as monetary policy pivots toward easing. Liquidity floods risk assets—crypto leads the charge. Bitcoin's volatility craters while open interest spikes. Ether derivatives signal bullish positioning ahead of the merge upgrade.

Institutional Flows Return

BlackRock's ETF volumes hit three-month highs. MicroStrategy adds another $500 million to its Bitcoin treasury. Pension funds quietly allocate to digital assets—ignoring traditional finance's outdated risk models. Wall Street finally grasps what crypto natives always knew: dollar debasement beats theoretical downside risks.

Technical Breakouts Confirm

BTC clears $70k resistance with unusual volume profile. ETH outperforms amid staking yield demand. Altcoins lag—again proving smart money sticks with blue chips. Mining stocks leverage the move as hash rate recovers.

Short Squeeze Accelerates

Leveraged bears capitulate after Fed guidance turns dovish. Funding rates normalize—no more panic premiums. Crypto VIX collapses to pre-crash levels. Options traders pile into calls, betting the rally has legs.

Regulatory Tailwinds Strengthen

SEC quietly approves new custody frameworks. Congressional bills gain bipartisan support. Banking channels open wider—on-ramps smoother than ever. Even Janet Yellen stops grimacing when mentioning blockchain.

Global Adoption Continues

Brazil adds BTC to reserves. Asian retail FOMO returns. European family offices increase allocations. Only hedge fund dinosaurs still worry about 'digital tulips'—while missing 200% returns.

Macro Backdrop Perfect

Real rates negative across curves. Dollar index breaks support. Gold peaks—capital rotates into harder assets. Crypto correlation with tech stocks decouples favorably.

Just don't tell the Fed they're fueling the very asset inflation they claim to fear.

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