Crypto Rebounds After Fed Rate Cut, BNB Hits New All-Time High

Major digital assets rebounded on Thursday after falling the previous day, following the Federal Reserve’s first rate cut of the year: a 25 basis point reduction on Wednesday.

Bitcoin (BTC) is trading at around $117,750, up about 2% over the past 24 hours. Ethereum (ETH) is trading near $4,630, gaining roughly 3% on the day.

XRP is up 3% at $3.12, while Solana (SOL) has climbed 6% to $249.BNB is trading near $995 after briefly topping $1,003 to set a new all-time high. The token’s momentum is being fueled by rising network activity and reports that Binance may be nearing a deal to sidestep the Department of Justice’s (DoJ) compliance monitor.

Overall, the total crypto market capitalization rose 2.3% over the past day, reaching $4.21 trillion, with Bitcoin dominance at 56.1% and Ethereum at 13.2%, according to CoinGecko.

Experts said the Fed’s rate cut has reignited interest across crypto markets, particularly in stablecoins and decentralized finance (DeFi), as lower interest rates often push investors toward higher-risk, higher-yield assets.

Sidney Powell, CEO and co-founder of Maple Finance, explained that liquidity tends to flow into crypto in stages.

“Bitcoin and ETH take the first leg up, then you see a rotation into altcoins like SOL and XRP, and subsequently into DeFi and other smaller cap tokens,” Powell told The Defiant. “For DeFi, lower rates are a clear positive because they boost leverage appetite, trading volumes, and protocol fees.”

Powell added that if the current cutting cycle continues, it could “reignite venture flows and institutional allocation, which gives the whole ecosystem a stronger foundation for the next growth phase.”

Liquidations and ETFs

Over the past 24 hours, nearly $409 million in crypto positions were liquidated, according to Coinglass, including more than $167 million in long positions and $241 million in shorts.

Ethereum led the way with over $121 million in liquidations, followed by Bitcoin at nearly $107 million, while other altcoins accounted for more than $28 million.

On Sept. 17, spot Bitcoin ETFs saw over $51 million in outflows, ending a seven-day streak of inflows that had totaled nearly $2.9 billion, according to SoSoValue. Spot Ethereum ETFs also recorded outflows of nearly $2 million, marking the second consecutive day of withdrawals.

Fed Policy Impact

Thursday’s market activity follows the Fed’s interest rate decision on Wednesday, along with strong signals that two additional cuts could come later this year.

Powell noted that these rate cuts could heavily influence crypto yields and investor behavior.

“Typically, crypto yields have moved counter to traditional rates. The reason is that as the Fed cuts, it drives investors into more growth and risk on assets like crypto,” the Maple Finance CEO explained. “This drives up the price and results in higher funding costs, so the crypto yield spread widens and becomes more attractive.”

He added that the move is likely to spark greater interest in stablecoin yields for better returns.

“This will trigger a growth in the balance sheets of crypto lenders like AAVE, Maple and Tether,” Powell said. “We have already started to see traditional allocators doing due diligence on crypto-backed loans, so the rate cut may accelerate adoption here.”