Asia Market Update: Bitcoin Traders Eye Fed Cuts as $4.5B Liquidity Challenges Approach

Crypto Markets Brace for Fed Cuts as Token Unlocks Test Liquidity – 17/9/2025

Crypto markets are gearing up for the Federal Reserve’s easing cycle, with a 25-basis-point rate cut widely expected tomorrow. OKX Singapore CEO Gracie Lin cautions that upcoming token unlocks and liquidity shocks could test market resilience, with liquidity likely determining which assets outperform.

Polymarket and CME FedWatch both signal a 25 bps cut at the next FOMC meeting, while the odds of three total cuts by year-end are rising. Polymarket anticipates more aggressive easing, whereas CME points to steady 25 bps steps, implying roughly 75 bps of total cuts for 2025.

On-Chain Activity Reflects Confidence
Bitcoin (BTC) trades at $116,762, up 1.3% on the day and 4.7% for the week, while Ethereum (ETH) sits at $4,502, up 4.3% weekly. Some investors remain on the sidelines, awaiting the Fed’s announcement.

Exchange Flows Show Reduced Selling Pressure
BTC exchange inflows have dropped to a seven-day average of 25,000—the lowest in over 18 months—with average deposit sizes halving to 0.57 BTC. ETH mirrors this trend, with inflows down to 783,000 from 1.8 million in August and average deposits falling from 40–45 ETH to 30 ETH.

Stablecoins are flowing into exchanges, with USDT deposits peaking at $379 million in August and holding around $200 million, providing liquidity to support a potential post-Fed rally.

Altcoins See Increased Activity
High-beta altcoins are experiencing renewed exchange activity, with seven-day transaction deposits rising to 55,000 from a previous 20,000–30,000 range, signaling potential profit-taking even as BTC and ETH supply remains tight.

Token Unlocks Could Pressure Markets
September brings $4.5 billion in token unlocks, potentially testing market absorption. Lin notes:

“Stablecoins near $300 billion in supply, token unlocks are testing market depth, and major infrastructure upgrades like Nasdaq’s tokenized securities indicate crypto’s integration into the global financial system.”

With the Fed pivot largely priced in, the key question is whether crypto’s liquidity, stablecoins, and exchange flows can absorb shocks and fuel the next leg higher for BTC.

Market Snapshot

• BTC: Trading above $116,500, buoyed by rate-cut expectations and technical factors, with some caution ahead of the Fed meeting.
• ETH: Showing modest gains, supported by BTC-driven momentum but facing macro and policy risks.
• Gold: Hitting record highs amid expected rate cuts, a weaker U.S. dollar, and global uncertainty, reinforcing its safe-haven appeal.

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