Cryptocurrencies rallied strongly Thursday morning as investors bet on a potential Federal Reserve interest rate cut in October. The total market capitalization of digital assets increased 2.6% to $4.1 trillion, with daily trading volume ticking up nearly 1% to $188 billion.
The CME FedWatch tool now signals a full 100% probability of a rate reduction this month. Most traders, 99%, expect a modest 25-basis-point cut, while just 1% anticipate a more aggressive 50-basis-point reduction.
The rising likelihood of lower rates has boosted appetite for cryptocurrencies, with capital flowing into the sector amid optimism about U.S. monetary policy.
As of 10:40 a.m. ET on Thursday, October 2, 2025, Bitcoin (COIN:BTCUSD) rose 1.9% over the past 24 hours, trading at $119,470, fluctuating between $116,853 and $119,815. Despite the rally, BTC remains 4% below its all-time high of $124,457.12 reached in August, with its market dominance steady at 58.3%.
Ethereum (COIN:ETHUSD) climbed 1.6% to $4,404.16, within a $4,292.45–$4,418.95 range. The second-largest cryptocurrency is still 11% shy of its all-time high and represents roughly 13% of total market share. Spot ETH ETF products drew $81 million in net inflows on Wednesday.
Among leading altcoins, XRP edged up 0.6% to $2.97, BNB gained 2.3% to $1,049.77, and Solana (SOL) rose 2.3% to $225.48. Dogecoin (DOGE) stood out with a 3.1% increase, trading at $0.2532. Cardano (ADA) advanced 0.6% to $0.8471, and TRON (TRX) climbed 0.7% to $0.342.
Top performers in the top 100 cryptocurrencies included Monero, which surged 8.2% to $329.22, and Ethena (ENA), up 5.7%. ZCash (ZEC) led the pack with a dramatic 62.9% increase to $146.00, followed by DeXe (DEXE), which jumped 31.2%. On the downside, MYX Finance (MYX) dropped nearly 20%, while DoubleZero (2Z), after a 15% dip, rebounded to $0.5786.
Sector-specific movements drew attention as well: cryptocurrencies tied to artificial intelligence and big data rose 4.1%, meme tokens gained 3.6%, and “Made in America” digital assets increased 2.7%.
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