Crypto Rally Signals Resilience Amid Fed Tailwinds and Regulatory Progress

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The latest rally highlights crypto’s resilience, with Bitcoin breaking above $117,000, XRP surpassing $3.00, and Dogecoin climbing more than 5 percent.

Much of this momentum stems from expectations that the Federal Reserve will deliver a 25-basis-point cut, supported by cooling inflation data such as August’s 2.8 percent PPI.

While a pause from the Fed could spark near-term volatility, institutional conviction remains clear: Bitcoin ETFs drew $757 million in inflows, and Ethereum ETFs are also seeing renewed demand.

These flows underscore crypto’s growing role as a prime beneficiary of easier monetary policy, reinforcing its maturation as an asset class.

At the same time, regulatory alignment is taking shape.

The UK’s forthcoming announcement of deeper cooperation with the US—focusing on stablecoins, AML standards, and harmonization under frameworks like the GENIUS Act and the UK’s Cryptoassets Order 2025—marks a turning point.

In the near term, such coordination reduces fragmentation and strengthens investor confidence, particularly in stablecoins, which are poised to expand their role as a bridge between traditional finance and digital markets.

Over the longer horizon, this bilateral progress signals the emergence of a more connected and compliant ecosystem.

By enhancing liquidity, supporting cross-border innovation, and encouraging institutional adoption, it sets the stage for sustainable industry growth and establishes crypto more firmly as a cornerstone of the global digital economy.

Ryan Lee, Chief Analyst at Bitget


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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