The recent decision by the U.S. Federal Reserve to decrease the interest rate by 25 basis points to 4% has sparked a significant upward movement in the cryptocurrency market. Bitcoin 
$77,337 surged past $117,000, with other leading cryptocurrencies also experiencing gains. The market remains focused on projections indicating the Fed may opt for faster rate easing over the next 12 months.
Cryptos React to Fed’s Rate Decision
Following the Fed’s rate cut, Bitcoin climbed approximately 1%, reaching its highest level in a month. Ethereum 
$2,390 saw an increase of 2.7%, although it continues to trade within a narrowing four-week price range. Solana 
$100‘s SOL coin tested the $245 mark, approaching its weekend peak. The Chicago Mercantile Exchange’s (CME) plan to introduce options for SOL and XRP on October 13 has partly driven these movements.
XRP also gained nearly 3%. The technical outlook suggests that the upward trend in altcoins remains intact. Meanwhile, other major cryptocurrencies like BNB and Dogecoin 
$0.081712 recorded gains exceeding 4%.
Dollar Index and Market Risks
Despite the recovery in cryptocurrencies, the U.S. Dollar Index (DXY) shows signs of strengthening. The index rose to 97.30, distancing itself from its low point earlier in July. This rebound suggests that expectations of rate cuts have largely been priced into currency markets.
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Federal Reserve Chairman Jerome Powell emphasized that rapid and successive rate cuts are not guaranteed, asserting that balance sheet reduction continues and inflation remains elevated. Powell’s remarks have supported the DXY’s recovery.
Crypto finance platform BloFin reported that professional investors are taking positions to hedge against low-probability but high-impact market shocks. Data indicates a rise in hedging sell strategies in short-term options trading.
