Bitcoin Falls Ahead of Fed Rate Cuts: What’s Happening?

Bitcoin started the week with a 3% drop, falling below $58,400. The dip is linked to market speculation that the U.S. Federal Reserve may soon cut interest rates. This expectation has caused shifts in investor sentiment and trading behavior.

Currently trading at $58,518.81 as per coinpedia markets data.

For a deeper dive into Bitcoin Price Prediction and market trends, check out our detailed analysis.

Bitcoin and Ether ETFs Attract Strong Inflows

  • U.S.-listed Bitcoin ETFs saw their highest inflows since July 22, totaling over $263 million on Friday. This shows significant investor interest in Bitcoin.
  • Ether ETFs also recorded inflows, though more modest at $1.5 million, showing ongoing demand for cryptocurrency investments.

Crypto Markets Slump Amid Asian Exchange Openings

The start of the week saw a decline across major crypto assets as Asian markets opened. Investors are closely watching the Federal Reserve, anticipating a potential rate cut, the first in over four years. Polymarket bettors are giving:


  • 51% chance of a 50 basis point cut
  • 48% chance of a 25 basis point cut
  • Only a 2% chance of no change

How the Fed’s Decision Could Impact Crypto

Historically, lower borrowing costs have sparked bullish trends in riskier sectors, including cryptocurrencies, as traders take advantage of cheaper access to capital. However, the uncertainty around the Fed's decision has caused noticeable market drops.

  • Ether (ETH) fell 5.5%, marking its worst day since early August.
  • Cardano (ADA) saw a 5% decline.
  • Solana (SOL) dropped by 4%.
  • BNB Chain (BNB) was the most resilient, with only a 1.1% decline.

With the Federal Reserve's upcoming rate cut decision looming, the crypto market is in a state of uncertainty. While Bitcoin ETFs show strong inflows, the broader market remains volatile, with major cryptos experiencing losses. Traders are cautiously watching the Fed’s move, which could spark new momentum in the coming weeks.

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