Price Update: Bitcoin clears $117,000, AVAX +10% on ETF news
The Fed's rate cut on Wednesday evening (the first of 2025) was framed by Fed Chair Jerome Powell with a stronger emphasis on the labor market.
The Federal Reserve lowers rates on Wednesday evening (the first of 2025) was framed by Fed Chair Jerome Powell with a stronger emphasis on the labor market. While the crypto market initially barely reacted, Bitcoin and altcoins now appear to be clearly moving higher.
Until midnight prices stayed almost flat as many investors had priced in the Fed move. In the morning hours sentiment flipped, and charts again show bullish signals.
The largest cryptocurrency, Bitcoin, is trading around $117,300 now, up 0.3% on the day and 2.8% higher than a week ago. Ethereum jumps 1.7% to $4,590 and could eye the psychological $5,000 level. Both coins are benefiting from strong inflows into spot ETFs: so far $501 million has flowed into Bitcoin products and $296 million into Ethereum ETFs.
Crypto analyst Tom Lee had already spoken of a possible “monster move” for Bitcoin and Ethereum, driven by the combination of looser liquidity and seasonal effects. The first signs of this now seem to be emerging.
Notably, the development of Avalanche (AVAX) stands out. The price rose 10% in 24 hours to $32.7 following news that asset manager Bitwise filed for an AVAX spot ETF. The expansion of stablecoin payments in Japan and Korea also contributed to the rise.
Additionally, two new crypto ETFs are expected in the U.S. today: one for Dogecoin and one for XRP. These products from Rex Osprey could be launched quicker because they were filed under the so-called 40-Act, which helps bypass typical SEC delays.
In the coming days, it will become clear how much of a sustainable boost the Fed rate cut provides to the crypto market. For now, the tone appears positive, with altcoins among the notable gainers.
