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Crypto surges: Fed rate cut hopes, ETF inflows drive rally.

09.09.2025 09:25

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**Internet Sources**

**Crypto Market Sees Gains Driven by Rate Cut Anticipation**

The cryptocurrency market experienced a widespread rally, fuelled by optimistic projections surrounding the Federal Reserve's upcoming interest rate decision. A significant catalyst for this positive sentiment appears to be the market's strong expectation of a rate cut. Traders are heavily betting on a reduction, with an 88% probability assigned to a 25 basis point cut and a 12% chance of a more aggressive 50 basis point decrease. This is according to futures market data. The imminent release of Thursday's Consumer Price Index (CPI) data will undoubtedly play a crucial role in either solidifying or altering these existing market positions.

Specifically, the aggregate crypto market capitalization climbed by 1.59% in the past 24 hours, reaching a substantial $3.9 trillion. This upward trend was spearheaded by Solana (SOL), which surged by an impressive 6%. This rally pushed Solana to challenge the $220 resistance level, a milestone not witnessed since February. Cardano (ADA) closely followed, showing a 5% increase, and Ripple (XRP) displayed a noteworthy 3.6% gain, positioning itself for a potential return above the $3 mark. Both Ethereum (ETH) and Bitcoin (BTC) registered gains of 1.5% each, while Binance Coin (BNB) showed minimal movement among the larger-cap assets.

Zooming into the mid-cap segment, Hyperliquid (HYPE) stood out with a remarkable 10% leap. This was partially fueled by intense bidding wars among issuers for the project's upcoming USDH stablecoin. Chainlink (LINK) also exhibited a commendable performance, experiencing roughly a 6% rise. This surge coincided with Grayscale's application for a spot ETF with the Securities and Exchange Commission (SEC), further indicating growing institutional interest.

Analysts suggest that the potential for rate cuts is the primary driver of the positive market trend. Wall Street Strategist and Fundstrat's CIO, Tom Lee, highlighted the correlation between monetary policy shifts and the broader investment landscape. He believes a Fed rate reduction would bolster business confidence, benefiting both equities and the cryptocurrency market. "This is why a Fed cut in September will be supportive of equities, particularly small-caps IWM and financials XLF and crypto BTC ETH," Lee commented. The market’s anticipation of lower interest rates seems to validate this perspective, as evidenced by the CME FedWatch data, which overwhelmingly points towards an interest rate reduction at the Federal Open Market Committee's September 17th meeting. Following the release of a weaker-than-expected Jobs Report, some traders are even pricing in the possibility of a more significant 50 basis point cut.