The Federal Reserve executed a widely expected 25-basis-point interest rate cut, bringing its target range down to 4.00%-4.25%. The move was driven by economic data suggesting a cooling economy, but the central bank remains cautious. While the door is open for more reductions before the end of the year, persistent inflation continues to be a primary concern, making the Fed's future actions heavily dependent on upcoming economic reports.
In the digital asset markets, the reaction to the prospect of easier monetary policy has been muted, with prices entering a consolidation phase. Despite potentially positive news, the market showed little upward momentum. Notably, significant buying from corporate treasuries Strategy and favorable regulatory signals from the SEC regarding exchange-traded products failed to ignite a rally, indicating that a cautious sentiment currently prevails among digital asset investors.
Bitcoin is currently trading in the $114,000-$115,000 range, following a brief upward momentum after the widely expected U.S. interest rate cut.
The initial rally through early September helped Bitcoin recoup some of its late-August losses, aided by both the Federal Reserve's decision and significant dip-buying activity.
However, the momentum has recently lost steam. Investor enthusiasm has been tempered by the Federal Reserve's cautious stance, as it remains unclear whether further rate cuts will materialize amid concerns over persistent inflation. This, along with a cooling labor market, has sparked wider questions about the U.S. economy. Within the crypto space, analysts are also flagging growing risks from corporate Digital Asset Treasuries (DAT’s), creating caution around long-term gains.
Ethereum's recent price correction into the $4200-$4300 range occurs as the asset has been consolidating, influenced by a volatile macroeconomic environment. However, this latest setback can be more directly attributed to recent regulatory developments in the United States. The U.S. Securities and Exchange Commission (SEC) has postponed key decisions, creating uncertainty in the market. Notably, the SEC extended its deadline to rule on a proposal for staking within the iShares Ethereum Trust (ETHA) until late October, a 45-day postponement from its original schedule. This cautious approach was further emphasized by delays in decisions for other spot crypto ETFs, such as those for Solana and XRP. Such postponements temper investor enthusiasm and contribute to short-term price setbacks as the market awaits greater regulatory clarity.
This week, investor attention will be firmly fixed on U.S. monetary policy, beginning with a critical inflation report due on Friday. The core Personal Consumption Expenditures (PCE) index, which is the Federal Reserve's preferred inflation metric, is expected to show a slight acceleration in August, with forecasts from Amberdata pointing to a 2.7% year-on-year increase, and a 2.9% rise in the core reading. This upcoming data provides a crucial backdrop for the market, particularly after Fed Chair Jerome Powell tempered optimism following last week's rate cut by emphasizing that future policy decisions would remain contingent on incoming economic figures. Against this setting, traders will closely analyze public remarks from ten different Fed officials scheduled to speak throughout the week, including Chairman Powell, searching for any signals regarding the trajectory of interest rates. Among them, Stephen Miran’s appearance is notable, as his recent dissent in favor of a more aggressive 50 basis point rate reduction highlights the internal division among policymakers.
This chart illustrates the significant growth in the total supply of stablecoins in USD across key blockchains from September 2020 to September 2025. The data shows three distinct phases: a rapid expansion until mid-2022, followed by a period of contraction through 2023, and a strong resurgence to new all-time highs in 2024 and 2025.
Throughout this entire period, Ethereum has consistently been the dominant chain, holding the largest share of the stablecoin supply. Tron has firmly established itself as the second-largest player. More recently, Solana has emerged as a major competitor, showing explosive growth in its share of the stablecoin supply since the beginning of 2024. BNB Chain and Arbitrum represent smaller but notable portions of the expanding multi-chain stablecoin market.