Bitcoin Steadies as Fed Cut and SEC ETF Overhaul Lift Market Sentiment

Bitcoin prices held steady on Thursday, while broader cryptocurrency markets advanced after the U.S. Federal Reserve delivered an expected interest rate cut and the U.S. Securities and Exchange Commission (SEC) approved new rules that could accelerate the launch of crypto-based exchange-traded products.

Fed Delivers Rate Cut, Flags More Easing

The Federal Reserve reduced its benchmark interest rate by 25 basis points to a range of 4.0%–4.25% at its September meeting. Projections showed policymakers remain open to further cuts if the labor market continues to weaken, though Chair Jerome Powell highlighted risks from sticky inflation. He also dismissed calls from President Donald Trump for a larger 50 bps reduction.

For crypto markets, lower U.S. rates are a positive driver, easing financial conditions and increasing liquidity in speculative assets. Analysts noted parallels with the sector’s 2021 bull run, which was powered by near-zero rates.

Bitcoin was last up 0.1% at $117,267.6 by 01:29 ET (05:29 GMT), steadying after recent gains.

SEC Opens Door to More Crypto ETFs

In a significant regulatory shift, the SEC approved new generic listing standards for cryptocurrency and spot commodity ETFs. This change removes the requirement for case-by-case reviews and shortens the maximum time from filing to launch to 75 days.

The first ETFs under the streamlined framework are expected to track assets like Solana and XRP. Market observers said the move could pave the way for a surge in new crypto ETF launches, broadening investor access and liquidity.

Altcoins and Memecoins Gain

Broader crypto markets reacted positively to the dual tailwinds of Fed easing and the SEC’s decision. Ether rose 1.7% to $4,590.11, while XRP added 2% to $3.0812. Solana gained 4.1%, and Cardano rose 3.6%.

Meme tokens also advanced, with Dogecoin climbing 4.7% and $TRUMP up 1.2%.