Cryptocurrency prices rose sharply after market expectations for a September U.S. Federal Reserve rate increase retreated, giving risk-sensitive assets a boost ahead of the central bank’s next meeting. CME data showed the implied probability of a 25-basis-point increase fell to about 50%, from 70% a day earlier, following comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams.
Bitcoin gained 4.54% over 24 hours in the market update, while Ethereum rose 4.95%. XRP climbed 5.89%, Dogecoin added 5.54%, BNB advanced 4.3%, Solana rose 3.39%, and Uniswap’s UNI token increased 9.78%. Zcash’s ZEC posted one of the largest moves among established tokens, rising almost 15%.
Waller said he would support leaving rates unchanged if August data continue to show progress on inflation. Williams separately said the case for another increase was not strong. Their remarks shifted attention toward incoming inflation readings rather than treating a rate rise as the Fed’s default outcome.
A lower expected path for interest rates can improve conditions for assets whose valuations are especially sensitive to financing costs and liquidity. Crypto’s response was broad, extending beyond Bitcoin and Ethereum into smaller tokens, crypto-linked shares, and leveraged products. Such moves can reverse quickly if inflation data disappoint or Federal Reserve officials strike a more restrictive tone before the meeting.
Smaller tokens and crypto-linked stocks outpace major assets
The strongest gains in the update came from more volatile corners of the market. EDGE rose 39.16% and CHIP gained 37.18%, while ICON’s ICX increased 17.61%. CORE, Velodrome’s VELODROME, XPL and Livepeer’s LPT each rose more than 13%.
The move also spread to companies and securities associated with digital assets. ChargePoint Holdings, trading under CHPT, rose 82.66% in the supplied market figures, while MSTX gained 32.55%. Canaan, BTCS, BNC, ABTC, CONL, STKE, MRLN and Strategy shares also recorded double-digit advances.
Crypto-linked equities often amplify Bitcoin-related market moves because their valuations combine exposure to digital-asset prices with company-specific factors such as capital structure, operating costs and trading liquidity. A one-day rally in these shares therefore does not establish that institutional buyers are accumulating them ahead of the spot market, as the supplied commentary suggested. It can also reflect rapid repositioning in thinly traded or leveraged instruments.
Bitcoin was quoted at $77,795 in the update, with market dominance of 59.7%. Its continued lead in total crypto-market value gives it outsized influence over sentiment, but the larger percentage gains in smaller tokens show traders were willing to assume more risk as rate expectations shifted.
Policy calendar adds a separate U.S. risk
The House of Representatives’ legislative schedule could leave crypto-market structure legislation unresolved through the midterm-election period. House Republican leadership removed planned votes for the weeks of Sept. 21 and Sept. 28, according to Alex Thorn, head of firmwide research at Galaxy Digital. The House is scheduled to return on Sept. 14 for a four-day session before departing Washington until after the elections.
That schedule reduces the immediate chance of House passage for the CLARITY Act, a bill intended to establish U.S. rules for digital-asset market structure and regulatory jurisdiction. The delay leaves U.S. firms facing a familiar operating environment: active enforcement and existing agency rules, but no comprehensive federal framework setting clear boundaries across token issuance, trading venues and custody.
The legislative setback contrasts with international discussions that are increasingly focused on stablecoins and payment infrastructure. Finance ministers and central-bank governors at the G20 meeting in Asheville, North Carolina, held from Aug. 31 to Sept. 1, placed digital-asset regulation on the U.S. G20 presidency agenda for 2026, according to the meeting’s agenda.
The group also identified global stablecoins, cross-border payments, extended operating hours for large-value payment systems and adoption of the ISO 20022 financial-messaging standard as priorities. Its call for stronger anti-money-laundering enforcement reflected uneven implementation of Financial Action Task Force standards: FATF data cited in the update showed that only one of 149 assessed jurisdictions was fully compliant as of July.
DeFi platforms add new routes for trading and transfers
Decentralized-finance activity remained active during the market advance. Robinhood Chain’s decentralized exchange recorded $1.89 billion in 24-hour trading volume, according to the supplied figures. Pons generated $5.95 million in fees during the same period, while Uniswap’s single-day protocol revenue reached $10.33 million.
Polymarket also launched perpetual futures tied to crypto, equities and commodities with leverage of up to 20 times. Perpetuals are derivatives without an expiry date, allowing traders to keep a leveraged position open so long as they maintain sufficient collateral. The product expands the platform’s previous offering across 10 assets, including Bitcoin, Ethereum, gold and the S&P 500.
High leverage can turn a modest price move into a forced liquidation when collateral falls below required levels. The same market conditions lifting major assets can therefore accelerate losses for traders using derivatives, particularly where liquidity thins during fast reversals.
Other infrastructure updates focused on reducing friction between blockchain networks. Jupiter introduced Universal Deposit, allowing users to send supported assets from Ethereum, Base, Arbitrum and Sui and receive USDC directly in a Solana wallet. The service charges a fixed $0.30 fee regardless of transfer size, according to Jupiter.
Ethena’s governance vote approving a fee switch also passed with 100% support, setting up a programmatic ENA buyback plan linked to future milestones. ENA rose more than 10.5% to $0.166 in the update. The plan’s eventual market effect will depend on the protocol’s fees, the terms of the buyback mechanism and demand for the token rather than the vote result alone.
As markets react to shifting Fed expectations, deepen your macro edge with our latest insights in Fed rate cuts and Bitcoin volatility.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
