Crypto Market Soars Following Fed Rate Cut and Anticipated ETF Approvals
The crypto market witnessed notable growth on September 18, with Bitcoin surging past $117,500 and overall market cap crossing $4.2 trillion. The primary driver behind this bullish trend is the Federal Reserve’s recent decision to reduce interest rates.
The Federal Open Market Committee lowered rates by 0.25%, setting a new range of 4.00%-4.25%. This reduction,though anticipated,exceeded investor expectations for a more dovish approach. The Fed’s dot plot signaled potential for further cuts, boosting confidence among crypto enthusiasts amidst persistent inflation concerns.
Concurrently, the anticipation of spot altcoin ETF approvals propelled the rally. Notably, the odds of XRP and cardano ETFs receiving SEC green light have surged to 97% and 87%, respectively. The SEC recently streamlined listing standards under the ’33 Act, facilitating quicker launches for ETFs backed by futures listed on exchanges like Coinbase.
- XRP ETF approval odds at 97%
- Cardano ETF approval odds at 87%
- Broadening access to 12-15 coins without lengthy processes
Demand for existing Bitcoin and Ethereum ETFs escalated, driven by inflows. Bitcoin ETFs secured an additional $2.5 billion this month, totaling $57.3 billion in assets. Ethereum ETFs saw inflows exceeding $146 million.
Futures trading metrics also indicated strong sentiment.CoinGlass data revealed a 3.28% hike in futures open interest over the past 24 hours,reaching $227 billion. Short positions valued at over $402 million faced liquidation, with notable losses for 110,500 traders, including a Bitcoin short worth over $42 million.
