Crypto Market Surges as Fed Rate Cut Bets Grow
Cryptocurrency markets are seeing strong gains as investor confidence improves. This comes alongside falling bond yields and gold hitting a new all-time high. These trends are boosting expectations that the Federal Reserve may cut interest rates by 0.25% in September. According to the CME FedWatch Tool, there is a 91.7% chance of a rate cut, slightly down from 92.7% the day before.
As the market sentiment recovers, the Crypto Fear and Greed Index—used to measure investor emotions—moved from fear into neutral territory, rising from 39 to 42. This shift reflects growing optimism across the crypto space.
The total value of the global cryptocurrency market jumped 2.1% overnight to reach $3.84 trillion. Out of the top 100 cryptocurrencies, only two saw losses greater than 1%, while 68 posted gains of over 1%.
Meme coins surged by 3.7% in total value. U.S.-based cryptocurrencies grew by 3.2%, and digital assets linked to artificial intelligence and big data rose by 2.9%. Coins included in the U.S. Strategic Crypto Reserve list also saw a 2.1% increase.
Bitcoin remains the dominant player in the market, holding a 57.7% share of all crypto assets. Ethereum follows with a 13.8% share, while other altcoins make up the remaining 28.5%.
Bitcoin is currently trading at $111,478.77, up 1.1% in the past 24 hours. It’s still about 10% below its all-time high of $124,457.12 from August 14. So far in 2025, Bitcoin has gained around 19.4%.
Ethereum also rose by 1.1% overnight to $4,387.43. Despite this uptick, it’s down 4.7% over the past week and sits about 11% below its record high. Year-to-date, Ethereum is up nearly 32%. Its price over the last day ranged between $4,394 and $4,260.
Bitcoin-focused spot ETFs in the U.S. pulled in $333 million in net inflows on Tuesday, bouncing back from $127 million in outflows on Friday. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the way with $133 million in inflows.
On the other hand, Ethereum-based spot ETFs saw net outflows of $135 million on Tuesday, slightly better than Friday’s $165 million outflow. However, the Fidelity Ethereum Fund (FETH) still managed to bring in $99 million in net inflows.
In terms of overall market value among all global assets, Bitcoin ranks 8th and Ethereum sits at 23rd.
Looking at other major cryptocurrencies:
– XRP (ranked 3rd) rose by 2% to $2.85, still about 26% below its peak.
– BNB (ranked 5th) increased by 0.9% to $855.51.
– Solana (ranked 6th) climbed over 5% to $211.49.
– Dogecoin (ranked 8th) gained 2.6%, now priced at $0.2172.
– TRON (ranked 9th) edged up by 0.5% to $0.3396.
– Cardano (ranked 10th) grew by 2.2% to $0.8346.
Among top gainers in the top 100 cryptos:
– MemeCore (ranked 76th) led with nearly a 15% jump.
– Ethena (ranked 31st) followed with over a 9% rise.
Among the biggest losers:
– World Liberty Financial (WLFI, ranked 27th) dropped by 2.8%.
– Pyth Network (PYTH, ranked 82nd) fell by 1.8%.
These movements highlight growing optimism in crypto markets as investors anticipate lower interest rates and continue to diversify into digital assets like Bitcoin, Ethereum, and emerging altcoins.