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Bitcoin, Ethereum, and altcoins rally as traders turn bullish after the Federal Reserve signals further rate cuts this year.<\/p>\n
Major digital assets rebounded on Thursday after falling the previous day<\/a>, following the Federal Reserve\u2019s first rate cut of the year: a 25 basis point reduction on Wednesday.<\/p>\n Bitcoin (BTC<\/a>) is trading at around $117,750, up about 2% over the past 24 hours. Ethereum (ETH<\/a>) is trading near $4,630, gaining roughly 3% on the day.<\/p>\n XRP<\/a> is up 3% at $3.12, while Solana (SOL<\/a>) has climbed 6% to $249.BNB is trading near $995 after briefly topping $1,003 to set a new all-time high. The token\u2019s momentum is being fueled by rising network activity and reports that Binance may be nearing a deal<\/a> to sidestep the Department of Justice\u2019s (DoJ) compliance monitor.<\/p>\n 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<\/a>.<\/p>\n Experts said the Fed\u2019s 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.<\/p>\n Sidney Powell, CEO and co-founder of Maple Finance, explained that liquidity tends to flow into crypto in stages. <\/p>\n \u201cBitcoin 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,\u201d Powell told The Defiant. \u201cFor DeFi, lower rates are a clear positive because they boost leverage appetite, trading volumes, and protocol fees.\u201d <\/p>\n Powell added that if the current cutting cycle continues, it could \u201creignite venture flows and institutional allocation, which gives the whole ecosystem a stronger foundation for the next growth phase.\u201d<\/p>\nLiquidations and ETFs<\/h2>\n