Fed Rate Cut Sparks Crypto Surge: Altcoins Outpace Bitcoin in Overnight Boom

The Federal Reserve cut interest rates for the first time in 2025, and although I disagree as a saver, we're already seeing some positive benefits of this decision in the crypto markets.

My position in Bitcoin Cash have exploded in less than 24 hours, BCH has gone up by over 7.5%. Likewise, Dogecoin has gone up by 5.5%. Can we directly attribute this overnight boom to the Federal Funds Rate lowering from 4.5% - 4.25% to 4.25% - 4.0%? Perhaps, but to me, it may be far more likely that the recent fall in the cryptocurrency markets over the past month are now turning around.

The trend, combined with expectations of a Federal Reserve interest rate cut—and now the official cut itself—may have all contributed to this surge. What’s interesting, however, is that this rapid growth has not been mirrored in Bitcoin. While Bitcoin did rise overnight, its increase was far more modest compared to Bitcoin Cash or Dogecoin. With Bitcoin's main competitors, Bitcoin posted a steady gain of 0.7%, while Ethereum and Binance rose by 1.9% and 3.9%, respectively.

Either way, the markets are going to be expanding as younger investors get into the cryptocurrency scene and as emerging markets in Latin America and Asia step into the ring. For a lack of a better phrase, "we're in Alt-Season baby!"