Traders prepare for Fed rate cuts, Bitcoin and Ethereum prices remain stable

Bitcoin and Ethereum prices remained flat on Tuesday, as traders were awaiting a Fed rate decision, with analysts highlighting its potential impact on the cryptocurrency market. The market generally expects the Fed to cut interest rates by 25 basis points, but the unexpected rate cut of 50 basis points may trigger a new bullish momentum. Money market funds with a yield of more than $7.5 trillion may drop, stimulating funds to turn to cryptocurrencies. US spot bitcoin and Ethereum ETFs recorded net inflows for many consecutive days, indicating that institutional investor interest has rekindled. However, recent risks include the Fed’s no longer dovish position, which may put pressure on the asset market. Option data shows that the market's bullish position at the end of the year will depend on macroeasing policies and continued ETF demand.