- Traders expect the U.S. Federal Reserve to start cutting interest rates, with a 25 basis point cut likely at the next FOMC meeting.
- Bitcoin and Ethereum prices are rising as investors anticipate rate cuts, while large holders are reducing sales and exchange inflows drop.
- Stablecoin deposits into exchanges have surged, suggesting traders are preparing for increased activity following policy announcements.
- Altcoins are seeing increased transaction activity, pointing to possible profit-taking, despite reduced selling in Bitcoin and Ethereum.
- September is expected to bring $4.5 billion in token unlocks, which may test market liquidity and stability.
The cryptocurrency market is gearing up for a likely interest rate cut from the U.S. Federal Reserve. Market data from Polymarket and CME FedWatch indicate strong expectations for a 25 basis point cut at the upcoming FOMC meeting. Both platforms suggest that three cuts by the end of this year are increasingly probable.
According to CryptoQuant, Bitcoin (BTC) is trading at $116,762, up 1.3% on the day and 4.7% for the week. Ethereum (ETH) is at $4,502, up 4.3% on the week. This upward movement reflects market optimism as traders price in the expected rate cuts.
Recent figures show lower exchange inflows for Bitcoin and Ethereum. The 7-day average BTC exchange inflow stands at just 25,000 BTC, the lowest in 18 months. The average BTC deposit has halved to 0.57 BTC, suggesting that major holders are not rushing to sell. Ethereum exchange inflows fell to a two-month low of 783,000 ETH, down from 1.8 million in August. The average ETH deposit also decreased to 30 ETH.
At the same time, stablecoin deposits, especially Tether (USDT), have increased. CryptoQuant notes that USDT deposits rose to $379 million at the end of August, and remain elevated at $200 million daily. This gives exchanges more capital, often called “dry powder,” which could support a price rally if demand rises.
Altcoins are behaving differently. Exchange transaction deposits for various alternative cryptocurrencies (altcoins) climbed to a 7-day total of 55,000. Earlier this year, the number ranged between 20,000 and 30,000, implying increased profit-taking in riskier assets as Bitcoin and Ethereum remain tightly held.
Gracie Lin, CEO of OKX Singapore, highlighted that “September brings a wave of token unlocks totaling $4.5 billion, a dynamic that could pressure liquidity and test market absorption.” Lin also noted that stablecoin supply approaches the $300 billion mark while global integration advances, such as Nasdaq‘s move toward tokenized securities, continue.
Gold is reaching new highs as investors seek safe-haven assets amid expected rate cuts and global uncertainty. The Nikkei 225 fell 0.3% and the S&P 500 slipped 0.13% as traders awaited the Fed decision.
Other developments include UAE–Binance-deal-says-his-father-is-first-guy-who-hasnt-made-money-off-of-the-presidency?utm_source=rss&utm_medium=rss”>Eric Trump defending a UAE-Binance deal and President Trump alleging harm to a meme coin in a lawsuit against the New York Times. Meanwhile, the Clarity Act’s legislative future remains uncertain.
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