Fed rate cut Bitcoin: The Federal Reserve cut rates by 25 basis points, and Bitcoin reacted with a brief spike above $116,000, signaling risk-on sentiment. The move lowers short-term yields and can support crypto asset prices as investors re-evaluate carry and risk allocations.
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Fed cuts 25 bps; Bitcoin briefly topped $116,000
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Whale activity: 4,001 ETH (~$18.02M) moved to Binance from an address linked to DonAlt
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Market context: First Fed cut since December 2024; Kalshi implied only a 7% chance of a deeper cut
Fed rate cut Bitcoin: Fed trims rates 25 bps and Bitcoin spikes above $116K — read full market impact, ETH whale transfer, and analysis by COINOTAG.
What does the Fed rate cut mean for Bitcoin?
The Federal Reserve cut the benchmark rate by 25 basis points, the first reduction since December 2024. Bitcoin reacted by briefly rising above $116,000 on Bitstamp, reflecting immediate risk-on flows and short-term repositioning by traders and institutions.
How did markets react to the Fed’s decision?
Markets priced the move as expected; most major analysts anticipated a 25 bps cut. Kalshi prediction-market implied probabilities showed just a 7% chance of a deeper cut. The decision reduced near-term borrowing costs and supported asset reallocation into higher-risk assets, including crypto.
Why did a top trader send $18 million in Ethereum to Binance?
A wallet linked to well-known trader DonAlt sent 4,001 ETH (≈$18.02M) to Binance. On-chain monitoring tools reported the transfer; the move is notable given the trader’s prior accurate market calls and the size relative to daily exchange flows.
How significant is the ETH transfer for market dynamics?
The 4,001 ETH transfer represents a sizable single-wallet deposit to an exchange and can increase short-term sell-side pressure if the funds are liquidated. Ethereum trades around $4,498 per coin, less than $500 from this month’s high, and ETH’s year-over-year gain exceeds 100% from under $2,200.
Bitcoin vs Ethereum: price movement summary
| Asset | Recent Price | Notable Move |
|---|---|---|
| Bitcoin (BTC) | $115,997 (Bitstamp) | Spiked above $116,000 on Fed rate cut |
| Ethereum (ETH) | $4,498 | 4,001 ETH (~$18.02M) sent to Binance from address linked to DonAlt |
Frequently Asked Questions
Did the Fed’s 25 bps cut cause the Bitcoin spike?
Yes. The 25 bps rate cut removed some interest-rate pressure, encouraging risk-on flows that contributed to Bitcoin’s brief move above $116,000. Market reaction was muted in volatility but showed immediate price support for risk assets.
Who reported the ETH transfer to Binance?
On-chain monitoring services reported the 4,001 ETH transfer. The sender address is publicly associated with trader DonAlt through blockchain analysis, and the deposit is now on Binance’s custody ledger.
Key Takeaways
- Fed policy shift: First rate cut since December 2024 — 25 bps — signaling a slightly easier monetary stance.
- Crypto reaction: Bitcoin briefly rose above $116K; Ethereum remains near monthly highs.
- Whale activity: 4,001 ETH (~$18.02M) moved to Binance from an address linked to DonAlt — monitor for possible exchange selling.
Conclusion
COINOTAG reports that the Federal Reserve’s 25 bps cut catalyzed a modest risk-on response in crypto markets, with Bitcoin momentarily topping $116,000 and a major ETH deposit landing on Binance. Traders should monitor exchange inflows and macro commentary for next directional cues. Stay updated with COINOTAG for live on-chain and macro coverage.
