Why Is The Crypto Market Up Today?

Approfondimenti Chiave

• The crypto market rebounded after the Federal Reserve delivered a widely expected 25-basis-point rate hike.
• Bitcoin recovered above $76,000 as several major cryptocurrencies moved higher.
• CryptoQuant analyst Crypto Dan said falling Bitcoin UTXOs in loss may reduce the risk of a return to a full bear cycle.

Why is crypto up today? The crypto market moved higher on Sept. 17 after Bitcoin recovered above $76,000 following the Federal Reserve’s latest interest-rate decision.

The Fed raised rates by 25 basis points to 3.75%-4.00%, a move traders had largely anticipated before the announcement. Bitcoin and several major altcoins subsequently stabilized after heavy selling earlier in the week.

Macro Policies Are Fueling The Crypto Market Rally

Le crypto market is moving higher even after the Federal Reserve raised interest rates by 25 basis points, bringing the target range to 3.75%-4%. It was the Fed’s first rate hike since 2023, but the move did not lead to a fresh sell-off across crypto.

The main reason is that traders had already expected the decision. Interest rate futures put the chances of a 25-basis-point hike at 92.7% shortly before the Federal Open Market Committee meeting. With the move already priced in, the actual announcement had less room to shock markets.

Bitcoin showed this clearly. BTC fell to around $75,350 before the decision, then moved above $76,100 within minutes of the announcement. It later reached about $76,500 before settling near $76,138.

CoinMarketCap data shows Bitcoin trading around $76,608, up 0.99% over 24 hours. Ethereum was near $2,442.81 and up 1.73%, while BNB gained 2.30% to about $726.06. XRP also rose 1.24%, while Solana climbed 3.50% to around $100.60.

The broader market was also in positive territory. CoinMarketCap showed total market capitalization at about $2.62 trillion, up 1.45%, while the CMC20 index gained 1.38%. The Fear and Greed reading stood at 64.

This helps answer why is the crypto up today. The Fed did raise rates, but investors had already positioned themselves for the decision, so crypto prices responded more to what was already known than to the hike itself.

Bitcoin Volume And Broader Market Activity

Bitcoin remains at the center of the move, with about $29.09 billion in 24-hour trading volume shown in the CoinMarketCap data. Ethereum recorded about $15.34 billion in trading volume, while USDC had around $17.81 billion.

That activity matters because the current crypto market move is not coming from Bitcoin alone. Several large cryptocurrencies are trading higher, although the performance is mixed across the wider board.

Zcash was one of the strongest performers, rising 15.07% over seven days and trading around $1,371.21. At the same time, some assets remained under pressure. XRP was down 5.38% over seven days, while Dogecoin fell 4.41% over the same period. This shows that the crypto market is recovering unevenly rather than moving higher across every asset.

There are also recent crypto-specific pressures to consider. The failure of the CLARITY Act to advance in the Senate weighed on sentiment and was followed by more than $300 million in liquidations. Bitcoin and Ethereum ETFs also recorded a combined $592 million in withdrawals on September 15.

So, why is the crypto up today cannot be explained by the Fed alone. Traders are also responding to price levels, trading activity, and the way markets absorbed those recent setbacks.

Crypto Dan Says Bear Cycle Is Becoming Less Likely

The other important part of the story comes from Crypto Dan’s X post, which points to Bitcoin’s on-chain data rather than short-term price action. According to the post, the percentage of UTXOs in loss has dropped sharply.

Crypto Dan argues that similar declines during previous market cycles were not simply short-term rebounds. He says moves of that size have previously been linked with the end of bearish phases and the start of bullish cycles.

His argument is important because it offers a different view of why the crypto is up today. While the Fed hike, ETF outflows, and the CLARITY Act setback have created short-term pressure, on-chain data may indicate a larger shift in Bitcoin’s market structure.

Crypto Dan also points out that the recent negative factors may continue to affect sentiment. The Fed has left the possibility of another rate hike before the end of the year, while the CLARITY Act remains unresolved.

However, his view is that these short-term issues may not be sufficient to erase the on-chain changes already underway. In his words, the market may only understand later how important the current period was.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and on-chain indicators or macroeconomic events do not guarantee future price performance.

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