HTX DeepThink: Fed's Rate Cut in September Drives Altcoin Season Rotation, but Policy Path Still Divided

BlockBeats News, September 21st. HTX DeepThink columnist and HTX Research analyst Chloe (@ChloeTalk1) pointed out that on September 17th, the Federal Reserve cut the federal funds rate by 25 basis points to 4%-4.25%, marking the first rate cut in nine months. Chair Powell emphasized the need for policy trade-offs between inflation and employment, hinting at further rate cuts in October, December, or beyond, but acknowledging dissent among board members.

The news boosted risk assets: BTC remained around $117,000, with a strong bullish sentiment in the options market; ETH held steady above $4,500, with long-term holders continuing to withdraw to storage. Funds started rotating from BTC to altcoins, with Solana rising to $244, daily trading volume on decentralized exchanges reaching $25 billion, BNB breaking the $1,000 mark, and BSC's total value locked increasing by nearly 10% over the week.

The market expects the loose monetary policy to continue, but if inflation rebounds or employment deteriorates, a short-term rebound may face "sell-the-news" risk.