HTX DeepThink: The first interest rate cut in 9 months drives altcoin rotation, but policy paths remain divergent.
TechFlowSep 19, 2025On September 19th, Chloe (@ChloeTalk1), a columnist for HTX DeepThink and a researcher at HTX Research, analyzed that the Federal Reserve cut the federal funds rate by 25 basis points to a range of 4%-4.25% on September 17th, marking the first rate cut in nine months. Policymakers noted that slowing job growth, declining work hours, and rising unemployment among minorities made employment risks outweigh inflation risks. After the meeting, Chairman Powell emphasized that "there is no risk-free path" and that policy would require a balance between controlling inflation and preserving employment. He also hinted at the possibility of further rate cuts in October and December to prevent further deterioration in the labor market. However, new Governor Milan advocated for a one-time 50 basis point rate cut, and seven of the 19 officials still opposed further rate cuts this year, reflecting divergent policy paths. This dovish shift boosted sentiment in risky assets. On September 18, Bitcoin fluctuated around $117,000, up 0.22% from the previous day and with a 36% increase in 24-hour trading volume. The options market was highly bullish, with open interest for $120,000 call options having a notional value of approximately $200 million. The recent put/call ratio was just 0.68. Ethereum remained above $4,500. Blockchain analytics data showed a net inflow of approximately $25.7 million into exchanges, but overall balances remained low, with long-term holders continuing to withdraw and store their holdings. Following the interest rate cut, funds began rotating out of Bitcoin and into altcoins: Solana rose to $244, with daily trading volume on decentralized exchanges reaching $2.5 billion. Binance Coin (BNB) broke through the $1,000 mark, and total locked-in value on the Bitcoin Cash (BSC) chain increased by nearly 10% this week. The market generally expects the easing cycle to continue this year, but the Federal Reserve emphasized that future actions depend on employment and inflation data, with core inflation remaining above the target range. This tone suggests continued policy uncertainty, which favors a continued rebound in digital assets in the short term. However, a rebound in inflation or a sudden deterioration in employment could lead to a "sell the news" market. [Techflow]
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HTX DeepThink: The first interest rate cut in 9 months drives altcoin rotation, but policy paths remain divergent.
TechFlowSep 19, 2025On September 19th, Chloe (@ChloeTalk1), a columnist for HTX DeepThink and a researcher at HTX Research, analyzed that the Federal Reserve cut the federal funds rate by 25 basis points to a range of 4%-4.25% on September 17th, marking the first rate cut in nine months. Policymakers noted that slowing job growth, declining work hours, and rising unemployment among minorities made employment risks outweigh inflation risks. After the meeting, Chairman Powell emphasized that "there is no risk-free path" and that policy would require a balance between controlling inflation and preserving employment. He also hinted at the possibility of further rate cuts in October and December to prevent further deterioration in the labor market. However, new Governor Milan advocated for a one-time 50 basis point rate cut, and seven of the 19 officials still opposed further rate cuts this year, reflecting divergent policy paths. This dovish shift boosted sentiment in risky assets. On September 18, Bitcoin fluctuated around $117,000, up 0.22% from the previous day and with a 36% increase in 24-hour trading volume. The options market was highly bullish, with open interest for $120,000 call options having a notional value of approximately $200 million. The recent put/call ratio was just 0.68. Ethereum remained above $4,500. Blockchain analytics data showed a net inflow of approximately $25.7 million into exchanges, but overall balances remained low, with long-term holders continuing to withdraw and store their holdings. Following the interest rate cut, funds began rotating out of Bitcoin and into altcoins: Solana rose to $244, with daily trading volume on decentralized exchanges reaching $2.5 billion. Binance Coin (BNB) broke through the $1,000 mark, and total locked-in value on the Bitcoin Cash (BSC) chain increased by nearly 10% this week. The market generally expects the easing cycle to continue this year, but the Federal Reserve emphasized that future actions depend on employment and inflation data, with core inflation remaining above the target range. This tone suggests continued policy uncertainty, which favors a continued rebound in digital assets in the short term. However, a rebound in inflation or a sudden deterioration in employment could lead to a "sell the news" market. [Techflow]
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