The anticipation of a potential U.S. Federal Reserve rate cut is sending ripples through the crypto market, leading to volatile price movements across various assets. With an 84.6% probability of a 25 basis point cut in September according to CME’s FedWatch Tool, cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) are experiencing significant fluctuations. This shift, driven by economic expectations, is also impacting other cryptocurrencies like BNB, which reached a new all-time high.
The sudden surge in probabilities for rate cuts has prompted speculation about the broader impact on the crypto sector. Market analysts highlight that historically, these dovish signals have been associated with significant price increases for Bitcoin and Ethereum. For instance, previous instances of dovish signals led to notable rallies of over 10% within days.
BNB’s recent performance is a prime example of this sensitivity. As of August 18, 2025, BNB traded at $856.27 with a market cap exceeding $119.27 billion and witnessed a notable 16.81% increase in trading volume within the past 24 hours.
CoinMarketCap reports that this surge highlights the interconnectedness of macroeconomic factors and crypto markets, especially when considering how increased liquidity can fuel market activity. Historical data suggests that cryptocurrency assets have historically reacted positively to dovish policy adjustments, aligning with a broader risk-on sentiment observed during previous easing cycles.
It’s important to remember that this information should not be considered as investment advice, and it’s crucial for readers to conduct their own research before making any financial decisions.