Bitcoin, XRP Jump as Fed Cut Sparks Crypto Rally. Strategy, Bullish Stocks Are Also Rising.

Bitcoin has jumped around 8% so far in September, while XRP is up close to 10%. (AFP via Getty Images)

Key Points

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• Bitcoin, XRP, and Ethereum rose Thursday after the Federal Reserve’s first interest-rate reduction in nine months.
• The Fed cut rates by a quarter point, and anticipates a further half-percentage point of cuts in 2025.
• CoinDesk owner Bullish soared 10% premarket after its earnings and revenue beat expectations.

Bitcoin, XRP, and Ethereum jumped early Thursday as crypto investors welcomed the Federal Reserve’s first interest-rate reduction in nine months and digested the prospect of more cuts to come.

The central bank cut rates by a quarter point Wednesday following recent weakness in the labor market. The Fed’s updated “dot plot” of interest-rate expectations showed a further half-percentage point of cuts in 2025.

Rate cuts tend to support cryptocurrencies as risky assets appear more attractive than lower-yielding safer investments, such as bonds.

Bitcoin was trading at $117,240 early in the day, up 0.3% over the past 24 hours, according to CoinDesk data. It’s been a strong September for the world’s largest cryptocurrency, which is up 8% this month.

Other digital assets enjoyed larger gains. Ethereum climbed 2% to $4,601—the second-biggest crypto is now up 82% in the third quarter of the year, according to FactSet data. Popular altcoin XRP rose 2.8% to $3.11, taking its September gain to 10%.

“In crypto, the [Fed] decision could act as a catalyst for a new altcoin rally, as investors reposition toward higher-risk assets in anticipation of looser liquidity conditions,” Markus Levin, co-founder of the blockchain network XYO, said.

Crypto-related stocks were also higher, led by CoinDesk owner Bullish following its earnings late Wednesday. The digital asset platform soared 84% to $68 on its trading debut last month but has since fallen back to $54.35 as of Wednesday’s close.

But the stock pointed 10% higher at around $60 ahead of the open. The company’s earnings and revenue in the second quarter beat expectations, while third-quarter guidance also topped estimates, according to FactSet data.

Strategy, the large Bitcoin holder formerly known as MicroStrategy , was up 2%, while Coinbase and Robinhood Markets were also both up around 2%.

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