Key Takeaways
Why did the crypto market record a relief rally?
The Fed cut the interest rate by a quarter point, and appeared open to more cuts, lifting BTC slightly above $117K.
What’s next post the Fed rate decision?
The focus will now turn to crypto ETF approvals and the market structure bill as key catalysts in the mid-term.
As expected, the Fed reduced the interest rate by 25 basis points and signalled more cuts in 2025, citing slowing labor markets.
Markets whipsawed immediately after the update, but afterward, Bitcoin [BTC] climbed higher above $117K for the first time since late August.
Source: CoinMarketCap
Amongst the top gainers were Avalanche [AVAX], which blasted 8% to $34. Hyperliquid [HYPE], followed closely, with a 6% jump to nearly $60.
Binance Coin [BNB] also rallied 4% and appeared ready to tag the $1000 psychological level.
With the above positive macro landscape, is the crypto market now ready for the historical ‘Upbtober’ and Q4 run?
SEC set to ‘open crypto ETF floodgates’
Looking forward, the market could benefit from upcoming crypto ETF approvals.
The U.S. Securities and Exchange Commission (SEC) has approved a new listing standard to help fast-track spot crypto ETF approvals. Especially if they have a Futures offering for over six months.
For Paul Atkins, Chair SEC, the move would enhance innovation and investor choice.
“This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”
On his part, ETF analyst Nate Geraci added SEC will unlock ‘crypto floodgates’ that will usher in mainstream access.
“So what happens from here…Crypto ETF floodgates are about to open. Expect an absolute deluge of new filings & launches.”
Source: X
The new standard has been cited by experts as one of the reasons for most crypto ETF delays. But with the latest approval, the over 90 pending crypto ETF applications could see some progress in Q4.
That said, Grayscale’s multi-crypto index fund, which contains Solana [SOL] and Ripple [XRP], was also approved to begin trading after considerable delay.
Hyperliquid rival ASTER rallies 380%
Finally, Aster [ASTER], a Hyperliquid rival backed by Binance’s Changpeng Zhao (CZ), has rallied +380% in a day after its debut.
CZ hailed the update as a ‘good start.’ But some users were quick to criticize his move as a vile attempt to regain control amid growing Hyperliquid dominance.
Source: X
Aster is billed as the ‘next generation’ DEX for perpetual markets, allowing users to trade with massive leverage.
It’s financed by CZ-linked YZi Labs. But one user claimed that CZ’s main aim was to ‘dethrone Hyperliquid’ as the perps market leader.