Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What's Next For Crypto?

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Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What's Next For Crypto?

On Wednesday, the Federal Reserve (Fed) announced a 25-basis-point rate cut from the previous rate of 4.25%, aligning with market expectations. Despite this bullish development being highly anticipated by top experts as the best catalyst for the remainder of the year, Bitcoin (BTC), XRP, and Ethereum (ETH) led the market downturn following the announcement.

Article Summary

**Bitcoin, Ethereum, and XRP Decline Despite Fed Rate Cut: Crypto Market Analysis** The Federal Reserve's anticipated 25-basis-point interest rate cut from 4.25% triggered unexpected cryptocurrency market volatility on Wednesday, with Bitcoin (BTC), Ethereum (ETH), and XRP leading a significant downturn. Despite crypto experts predicting the rate reduction would serve as the year's strongest bullish catalyst for digital assets, major cryptocurrencies experienced immediate selling pressure following the Fed announcement. This counterintuitive market reaction highlights the complex relationship between traditional monetary policy and cryptocurrency valuations. While lower interest rates typically benefit risk assets like Bitcoin and altcoins by reducing opportunity costs, the immediate market response suggests traders may be taking profits or repositioning portfolios ahead of year-end. The blockchain and DeFi sectors are closely monitoring Federal Reserve policy decisions, as interest rate changes directly impact institutional crypto adoption and investment flows. Market analysts are now reassessing cryptocurrency price predictions and technical indicators to determine whether this dip represents a temporary correction or signals broader market uncertainty. Investors should watch for potential buying opportunities as the crypto market digests this monetary policy shift and evaluates long-term implications for digital asset valuations.

Article Details

Source
NewsBTC
Published
October 29, 2025 at 11:49 PM
Sentiment
🔴 Negative
Type
Article
Category
general
Related Cryptocurrencies
BTCETHXRP

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