BNB Hits $1,000 as Fed Rate Cut Fuels Altcoin Surge

Crypto markets climbed Thursday as traders digested the U.S. Federal Reserve’s first interest-rate cut since December 2024, trimming the federal funds target to 4%–4.25%. The 25-basis-point move reinforced expectations for more easing later this year and sparked a risk-on mood across digital assets.

Bitcoin hovered near $117,300, ether traded around $4,600, solana at $246, and XRP near $3.03. Binance’s BNB stole the spotlight, breaking above $1,000 for the first time before easing to about $993. The milestone drew praise from Binance co-founder Changpeng Zhao, who reflected on BNB’s rise from a $0.10 ICO price eight years ago to a four-figure valuation.

Market action hinted at a classic “rotation trade,” with large-cap altcoins outpacing bitcoin as liquidity shifted. Analysts flagged $118,000 as bitcoin’s near-term resistance and $115,000–$115,500 as key support. Despite the upbeat tone, U.S. spot bitcoin ETFs posted $51.28 million in net outflows Wednesday—the first in eight days—while Ethereum ETFs saw a modest $1.89 million outflow, signaling some profit-taking beneath the surface.

Derivatives data showed a mixed picture: BTC and SOL perpetual futures open interest dipped, while ETH, XRP, and BNB contracts rose, underscoring leveraged repositioning among traders. Observers warned that a lack of aggressive Fed guidance could spark a “sell the news” pullback, but for now, the Fed’s rate cut has given crypto markets fresh short-term momentum.