Fed Rate Cut Spurs $748M Bitcoin Inflows, Market Faces Volatility Risks

News Flash 2025-09-19 22:16

The Federal Reserve's recent 25 basis point rate cut has led to a significant inflow of $748 million into Bitcoin-related products by September 1, 2025, according to Coinshares. This influx is expected to enhance market liquidity and boost trading activity in cryptocurrencies such as Ethereum and Dogecoin. However, the rate cut also introduces potential volatility risks. The market's sensitivity to Federal Reserve policies could lead to fluctuations if future policies are more conservative. Historical trends, like the December 2024 rate cut, resulted in sharp price declines for Bitcoin and Ethereum. Additionally, a 'buy the rumor, sell the news' effect may cause investors to sell off after the rate cut confirmation, potentially leading to price drops.

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This content is for informational purposes only and does not constitute investment advice.

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