Altcoins Surge After Fed Rate Cut Boosts Crypto Market

Altcoins rally up to 8% as the crypto market gains 1% after the Fed’s 25 bps rate cut. Bitcoin remains mostly flat.

Aurelien Sage September 18, 2025 - 4:00 PM

Altcoin

Fed rate cut triggers 1% crypto market growth
Altcoins outperform Bitcoin with 4–8% gains
Sentiment stays neutral amid $411M liquidations

The Federal Reserve’s recent 25 basis point rate cut has nudged the crypto market upward, with a 1% overall gain. Investors responded positively to the monetary easing, especially in the altcoin segment, which saw impressive gains of up to 8%.

Lower interest rates often lead to increased interest in speculative assets, and cryptocurrencies are no exception. The rate cut has made the market more appealing, particularly for short-term traders eyeing altcoins.

Bitcoin Stays Flat, Altcoins Lead the Charge

Despite the market boost, Bitcoin (BTC) remained mostly flat, slipping just 0.04% to $117,192. In contrast, Ethereum (ETH) inched up 0.7% to $4,578, and several top altcoins gained between 4% and 8%.

The Fear & Greed Index held at 52, reflecting a neutral stance among investors. This suggests the market is waiting for clearer signals before making bigger moves, especially with more potential Fed actions on the horizon.

The crypto market grew 1%, following the Fed’s 25 bps rate cut. Most major altcoins rose by 4–8%, while Bitcoin remained relatively flat.$BTC: $117,192 -0.04%$ETH: $4,578 +0.7%

FGI: 52 → Neutral
Market Cap: $4.34T
Liquidations: 411M pic.twitter.com/mxp8Zrv6xw
— CryptoRank.io (@CryptoRank_io) September 18, 2025

Market Cap Rises, Liquidations Spike

The total crypto market capitalization now sits at $4.34 trillion, showing modest growth. However, liquidations totaled $411 million, indicating some shakeouts in leveraged positions during the volatility following the Fed announcement.

While Bitcoin holds steady, the rate cut has clearly boosted confidence in altcoins. This shift could suggest growing diversification strategies among traders responding to macroeconomic cues.

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