Crypto surge: Markets rally as investors anticipate FOMC rate cuts

The crypto market has suddenly turned green after a slight pullback ahead of the outcome of the FOMC meeting tomorrow.

Crypto market analytics firm Santiment said on 16 September that there is a strong positive sentiment coming from investors, which could be the reason behind the rally.

It further stated that there’s a high bullish sentiment across social media, but the rally should be approached with caution as things may not go the way many expect.

🇺🇸 The highly anticipated FOMC meetings in the US kick off today, and will conclude tomorrow with an anticipated result of interest rates being cut by 25bps.

👀 We are seeing the impact of this in Bitcoin's social metrics. Bullish comments are outnumbering bearish comments,… pic.twitter.com/vmwBtMgLcH

— Santiment (@santimentfeed) September 16, 2025

Rate cut fuels confidence

There is a high anticipation of rate cuts as the outcome of the ongoing FOMC meeting which ends tomorrow.

This is usually a bullish sign for crypto investors as more people are emboldened to borrow money and invest in high-risk assets like crypto, causing prices to rise.

The high expectation of a rate cut comes from president Donald Trump’s open criticism of the Fed chairman Jerome Powell, saying the Fed needs to cut rates.

The president has severally tweeted saying a significant rate cut is required to strengthen the U.S. economy.

Good morning legends ☕️

🇺🇸🦅 #DonaldTrump pressures the Fed

🔹 President Donald Trump stated that he expects a “big rate cut” from the Federal Reserve this week.
🔹 Trump called the timing “perfect for a cut,” citing the economic slowdown and the global liquidity context.
🔹…

— Thomas Lauder ⚖️ (@thomas_laud22) September 15, 2025

Crypto assets rally

Top crypto assets have started rallying with this expectation in mind, with BNB leading the top ten at 3.9% gain in the last 24 hours.

Similarly, Bitcoin is up 1.4%, bringing the price to over $116,500 at the time of reporting. Several mid-cap assets are also gaining momentum and the rally is expected to grow stronger according to Santiment.

Screenshot of top ten crypto assets. Source: Coinmarketcap.com

However, the firm also advises caution, as the market usually goes in the opposite direction to retail investors’ sentiment.

If the rate cut does not happen, Santiment warns that many retail investors could be caught off guard in a sudden market correction following such a resolve by the FOMC.

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