The Federal Reserve suddenly took action.

At 2 a.m., Powell announced that the federal funds rate would be lowered to 3.5%-3.75%, marking the third rate cut this year. Non-farm employment data weakened significantly, with the unemployment rate rising to 4.4%, becoming the main driver for the rate cut. The dollar stabilized after a short decline, while gold prices are searching for direction amid volatility.
But here’s a key detail—the market had expected a more aggressive approach. The dot plot, however, showed only one possible rate cut in 2026, which is far from traders’ expectations. The probability of a rate cut in June is only 50%, and there is no consensus within the Federal Reserve—some advocate for a 50 basis point cut, while others outright oppose further easing. Concerns about a rebound in inflation still persist.
On the crypto side, the atmosphere is quietly shifting. On the Ethereum chain, activity in meme coins and emerging assets has noticeably increased, and previously dormant liquidity pools are beginning to show signs of fund inflows. The Fed’s bond purchases reached $40 billion, far exceeding market expectations, signaling a clear easing stance. Such moments are always likely to attract the attention of risk capital.
Mainstream cryptocurrencies like BTC, ETH, ZEC are now on the table—the key question is what happens next. If employment continues to worsen, a new easing cycle could restart; if inflation makes a comeback, this wave of easing expectations will collapse directly. The June rate decision will be a watershed, and global asset allocation may face a reshuffle. The crypto market is currently like waiting for a ray of light amid the storm.