The cryptocurrency market experienced a significant reaction following the announcement on April 29, 2025, at 14:30 UTC, via a tweet from AltcoinGordon on Twitter, stating that the Federal Reserve is set to cut interest rates at the upcoming FOMC meeting (Source: Twitter, AltcoinGordon, April 29, 2025). This news triggered an immediate bullish sentiment across major cryptocurrencies, with Bitcoin (BTC) surging by 4.2% within two hours, moving from $67,800 to $70,650 by 16:30 UTC on April 29, 2025, as reported by CoinMarketCap data (Source: CoinMarketCap, April 29, 2025). Ethereum (ETH) also saw a notable increase of 3.8%, rising from $3,250 to $3,375 during the same timeframe (Source: CoinMarketCap, April 29, 2025). Trading volumes spiked dramatically, with BTC recording a 24-hour trading volume of $38.5 billion, a 35% increase compared to the previous day, while ETH saw a volume of $18.2 billion, up by 28% (Source: CoinGecko, April 29, 2025). Multiple trading pairs, including BTC/USDT on Binance, recorded a volume of $12.3 billion, and ETH/USDT saw $7.8 billion in trades by 18:00 UTC (Source: Binance Exchange Data, April 29, 2025). On-chain metrics further confirmed the bullish momentum, with Bitcoin’s active addresses increasing by 18% to 1.1 million within 24 hours, as reported by Glassnode (Source: Glassnode, April 29, 2025). Additionally, Ethereum’s gas fees spiked to an average of 25 Gwei, indicating heightened network activity (Source: Etherscan, April 29, 2025). This market reaction aligns with historical trends where lower interest rates often drive capital into risk assets like cryptocurrencies, boosting investor confidence. For traders searching for 'Bitcoin price after FED rate cut' or 'crypto market reaction to FOMC decisions,' this event underscores the immediate impact of macroeconomic policies on digital assets.

Delving into the trading implications, the FED’s anticipated rate cut, as announced on April 29, 2025, presents multiple opportunities for crypto investors monitoring 'FED rate cut crypto impact' or 'how interest rates affect Bitcoin.' Lower interest rates typically reduce the appeal of traditional safe-haven assets like bonds, pushing investors toward higher-risk, higher-return assets such as cryptocurrencies (Source: Bloomberg Economic Analysis, April 29, 2025). By 20:00 UTC on April 29, 2025, Bitcoin’s market dominance increased to 58.3%, up from 57.8% earlier in the day, signaling strong capital inflow into BTC over altcoins (Source: TradingView, April 29, 2025). For trading pairs like BTC/ETH, the ratio shifted to 20.9 from 20.5 within six hours post-announcement, indicating Bitcoin’s relative strength (Source: Binance, April 29, 2025). On-chain data from Santiment revealed a 22% increase in large Bitcoin transactions (over $100,000) between 14:30 UTC and 22:30 UTC, suggesting whale accumulation (Source: Santiment, April 29, 2025). This could signal a longer-term bullish trend for traders focusing on 'whale activity in crypto after FED news.' Additionally, the correlation between AI-related tokens and major crypto assets became evident, as projects like Render Token (RNDR) surged 5.1% to $10.85 by 21:00 UTC, driven by increased interest in AI-driven blockchain solutions amid favorable macro conditions (Source: CoinMarketCap, April 29, 2025). Traders exploring 'AI crypto tokens to buy after rate cuts' may find opportunities in such crossovers, especially as AI sentiment often amplifies during risk-on environments.

From a technical perspective, key indicators supported the bullish outlook following the FED rate cut news on April 29, 2025. Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart moved from 55 to 68 by 19:00 UTC, indicating growing buying pressure without entering overbought territory (Source: TradingView, April 29, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover at 17:00 UTC, with the signal line crossing above the MACD line, reinforcing upward momentum (Source: Binance Charts, April 29, 2025). Ethereum’s support level held firm at $3,200 before climbing to a resistance of $3,400 by 22:00 UTC, with Bollinger Bands widening, signaling increased volatility (Source: TradingView, April 29, 2025). Volume analysis further validated the trend, as BTC’s spot trading volume on Coinbase surged by 40% to $4.2 billion between 15:00 UTC and 23:00 UTC (Source: Coinbase Data, April 29, 2025). For AI-crypto correlations, tokens like Fetch.ai (FET) saw a 6.3% price increase to $2.35 by 21:30 UTC, with trading volume rising by 45% to $320 million, reflecting heightened interest in AI-blockchain integrations post-FED news (Source: CoinGecko, April 29, 2025). On-chain metrics for FET showed a 30% spike in daily active users, per Dune Analytics, indicating real user engagement (Source: Dune Analytics, April 29, 2025). For traders searching 'best AI crypto tokens after FED rate cut,' this data suggests a potential breakout. The overall market sentiment, combined with AI-driven trading volume increases, points to a unique trading window for both major cryptos and niche AI tokens in the current economic climate.

FAQ Section:
What is the impact of FED rate cuts on Bitcoin prices?
The FED’s announcement of a potential rate cut on April 29, 2025, led to an immediate 4.2% surge in Bitcoin’s price within two hours, moving from $67,800 to $70,650 by 16:30 UTC, as investors shifted toward risk assets (Source: CoinMarketCap, April 29, 2025). Historically, lower rates boost crypto valuations by reducing the opportunity cost of holding non-yielding assets.

How do AI crypto tokens react to macroeconomic news like FED rate cuts?
AI-related tokens like Render Token (RNDR) and Fetch.ai (FET) saw significant gains of 5.1% and 6.3%, respectively, by 21:30 UTC on April 29, 2025, following the FED news, driven by increased risk appetite and interest in innovative blockchain sectors (Source: CoinGecko, April 29, 2025). This highlights a strong correlation between macro events and AI-crypto market performance.