3 Crypto Market Shakers as Fed Decision Looms

Brace for impact—the Fed's next move could send crypto on another wild ride.

Interest Rate Ripple Effects

Higher rates typically drain liquidity from risk assets. Watch how Bitcoin reacts—it's become the canary in the coal mine for speculative markets.

Dollar Strength Drama

A hawkish Fed supercharges the dollar, creating headwinds for crypto. Remember—digital assets often move inversely to DXY.

Risk Appetite Reset

Tightening monetary policy could trigger a 'risk-off' cascade across altcoins. Retail traders might finally remember that 'number go up' isn't an investment thesis.

Whatever the Fed decides, crypto won't go down without a fight—volatility is the price of admission in this circus. Just another day where traditional finance reminds everyone they still hold the leash.

Economic Events September 15 to 19

The August retail sales report is due on Tuesday, which is a gauge of consumption and broader economic sentiment.

The main event of the week is the FOMC meeting on Wednesday, which is likely to see the central bank cut rates for the first time since December 2024. CME futures markets project a 96.4% probability of a 25 basis point cut and a 3.6% chance of a larger 50 basis point cut.

The Fed has been clear recently that it is more focused on the weakening labor market than on any persistent inflation risks.

“Amid US macro uncertainty and gold’s record rally, crypto assets are demonstrating resilience and long-term hedging properties against inflation,” said Nick Ruck, director at LVRG Research.

“With aggressive fiscal policies and expected Fed easing likely to extend the crypto cycle into 2026, both assets stand to benefit from sustained macroeconomic pressures. Mounting stagflation concerns may further support this dynamic, reinforcing the case for alternative stores of value as the Fed weighs this week’s interest rate decision.”

Key Events This Week:

1. August Retail Sales data – Tuesday

2. Fed Interest Rate Decision – Wednesday

3. FOMC Press Conference – Wednesday

4. Fed Dot-Plot Projections – Wednesday

5. Philadelphia Fed Manufacturing Index – Thursday

6. Initial Jobless Claims data – Thursday…

— The Kobeissi Letter (@KobeissiLetter) September 14, 2025

“We have concerns that the September 17 Fed meeting, which delivers a 25bp cut, could turn into a ‘Sell the News’ event as investors pull back to consider macro data,” wrote JPMorgan Global Head of Market Intelligence Andrew Tyler in a note.

Thursday will see the Philadelphia Fed Manufacturing Index and initial jobless claims data, but neither is likely to impact markets.

Crypto Market Outlook

With the Fed rate cut largely priced in, markets are already starting to react with the typical Monday decline as total capitalization shrinks by 1% to $4.13 trillion.

Bitcoin topped $116,000 twice over the past 24 hours but faced resistance there before sliding back to $115,000. The asset recovered in early trading on Monday morning in Asia to return to $116,000.

Ethereum topped $4,700 before pulling back slightly over the weekend to trade at $4,630 at the time of writing as it remains rangebound.

The altcoins were mostly red with larger losses for XRP, Solana, Cardano, and Chainlink.