Why is Crypto Up Today? Key Reasons Behind Bitcoin and Altcoin Rally

Today's total cryptocurrency market capitalization is $4.19 trillion, having fluctuated 2.1% in the last 24 hours. Total trading over the last day is around $171 billion. Bitcoin dominance remains 55.2%, and Ethereum dominance remains 13.6%. Today's biggest movers are Polkadot Ecosystem and XRP Ledger Ecosystem cryptos. But why are Bitcoin, altcoins, and even memecoins all trending higher at the same time?

Why is Crypto Up Today? Key Reasons for the Rally Today

Among the key reasons for the bullish momentum today is the soon-to-be-held Fed rate cut meeting on September 17, 2025 . Investors are anticipating a Fed rate cut by 25 basis points, with the odds of this happening at 93.4%. The odds of a bigger 50bps cut have fallen to 6.6%. This would be the year's first Fed rate cut should it happen. The expectation level has created rising hopes among investors, leading the crypto with confidence.

Source: FedWatch Tool

The rally of US stocks is the second reason that lifted the sector. S&P 500 finally broke above 6,600, notching one of the best five-month advances in US history, up 36% from its April 2025 low. Improved performance in legacy equities has a confidence-boosting effect on digital currencies and has a spillover impact.

Source: X

In addition, the recent US CPI and PPI releases also caused volatility. Market makers responded to these inflation metrics, which again affected the short-term price action of Bitcoin, Ethereum, and major memecoins.

• Bitcoin price today surged by about 1%, trading at $115,992 as of present with a market capitalization of $2.31 trillion. MicroStrategy's ongoing Bitcoin purchase and estimates for Bitcoin to reach $21 million per coin have strengthened investor optimism. MicroStrategy presently holds 638,460, about $74.05 billion.

• Ethereum, Solana, and XRP have also appreciated due to appropriate whale investments and regular buying demand. The Dogecoin price increased by 30% within a day and is now $0.2939 with a market cap of $44.37 billion. The Dogecoin ETF launch by REX-Osprey played a significant role in boosting investor confidence in this popular memecoin.

• Smaller and newly listed tokens like Linea, XDOG, and Pump.fun are trending now. Linea trades at $0.0234, XDOG at $0.0433, and Pump.fun at $0.0063. Hifi Finance token saw an unusual spike after the news of its Hifi Finance Binance delisting, surging 600% to $0.4847.XDOG experienced a 180% surge, and Unibase experienced a 150% surge in one day.

What Traders Should Be Monitoring Next

With only four days to the Fed rate cut, the cryptocurrency sector continues to be extremely volatile. Unforeseen events such as political events, tariffs, or changed Fed rate cut expectations may affect market activity. Be careful and practice risk management before investing, warn traders.

Conclusion

The cryptocurrency market is providing good support with expectations of Fed rate cuts, rallying equity indexes, and favorable news such as the launch of Dogecoin ETF and Hifi coin rally. Though the gains are significant, the investors must be cautious and look out for news for momentary market fluctuations.

Disclaimer: This is for Educational purposes only. Always do your own research prior to any crypto investment.