CoinDesk
Sep 12, 2025
1 0

Crypto Market Bullish as Traders Anticipate Three Fed Rate Cuts

Market Overview:

  • Traders anticipate three Fed rate cuts this year, starting next week, boosting bullish sentiment.
  • Bitcoin (BTC) is expected to reach new highs; altcoins like XRP and SOL may outperform BTC and ETH.
  • Potential approval of spot ETFs for XRP and SOL could drive demand.
  • Interest in tokens BNB and HYPE increases after reaching all-time highs.

Institutional Involvement:

  • Polygon Labs collaborates with Cypher Capital to enhance institutional access to POL token.
  • Continued interest from institutional investors in yield-generating digital assets.

Market Indicators:

  • U.S. 10-year Treasury yield might drop below 4%, a positive sign for markets.
  • Whale buying activity noted in HYPE, which rose over 5% in seven days.
  • The dollar index remains stable even with high chances of Fed rate cuts.

Upcoming Events:

  • Sept. 12: Gemini Space Station starts trading on Nasdaq, Dogecoin ETF begins on Cboe BZX Exchange.
  • Sept. 14: Hyperliquid votes on USDH stablecoin issuer.
  • Sept. 15: Starknet and Sei unlock a percentage of their circulating supply.

Security Concerns:

  • Thorchain founder hacked via deepfake video call, resulting in $1.2 million stolen.
  • North Korean hackers linked to the incident, reflecting ongoing security challenges.

Derivatives Insights:

  • Open interest in cryptocurrency futures rises as traders expect rate cuts.
  • High open interest in PENGU validates price increase; negative rates for SKY and PYTH indicate bearish sentiment.
  • CME’s BTC futures see increased open interest, signaling renewed focus on BTC.

Market Movements:

  • BTC up 0.53% at $115,049.85; ETH up 2.21% at $4,515.82.
  • CoinDesk 20 index increased by 1.82%.
  • Traditional markets show mixed movements, with some indices closing higher.

Crypto Equities:

  • Notable increases in stocks like Coinbase (+2.73%) and Circle (+17.6%).

ETF Flows:

  • Spot BTC ETFs: Daily net flow of $552.7 million and total holdings of ~1.30 million BTC.
  • Spot ETH ETFs: Daily net flow of $113.1 million and total holdings of ~6.42 million ETH.

Technical Analysis:

  • XRP attempts to break above a descending triangle consolidation pattern.