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A 50 basis point cut by the Federal Reserve, along with the first Bitcoin purchase by a U.S. presidential candidate, boosted digital assets. Bitcoin (BTC) is currently trading near $62,000, up 2.4% over the last 24 hours. Solana (SOL) led the charge with a 6% increase, while other major assets like BNB, XRP, and ADA saw gains of up to 4.5%. Even memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) joined the rally with 4% increases.

Mixed Reactions to Rate Cut Impact

Despite the optimism, some market experts remain cautious. Chris Aruliah, Head of Institution at ByBit, acknowledged that while the rate cut provided short-term relief, the broader economic slowdown could weigh on the market. He emphasized the need to stay alert to potential economic challenges and market fluctuations.

Arthur Hayes, meanwhile, questioned the necessity of the rate cuts, suggesting they may only provide a brief rally before revealing deeper issues in the global financial system. He also warned that cutting rates amid high inflation could lead to more significant economic problems.

Market Uncertainty Remains

Presto Research also highlighted the divided market sentiment, with investors unsure about the long-term implications of the Fed’s rate cuts. Concerns over economic growth and the potential for a recession are keeping some investors on edge, despite short-term gains.

BREAKING: The Federal Reserve has cut interest rates for the first time since the start of the pandemic, cutting rates by 50 basis points.

The Fed says it has "greater confidence" that inflation will return to a normal level.

The cut was more aggressive than what many… pic.twitter.com/0xY9I6y78H

— Collin Rugg (@CollinRugg) September 18, 2024

More Rate Cuts Expected

Traders on Polymarket are betting that the Fed will continue cutting rates. There’s a 41% chance of a 100 basis point cut by year-end, with additional cuts likely in November and December. For November, traders expect a 25 basis point cut with a 65% probability, and for December, there’s a 50% chance of another 25 basis point reduction.

AI Tokens and Altcoins Surge

We’re excited to announce that Aleo has selected @coinbase to support custody and several exciting programs across Learn Rewards, Quests, and Staking.

Read more about this integration ↓https://t.co/trpk0vGgDN pic.twitter.com/8UVoHwGpFw

— Aleo (@AleoHQ) September 18, 2024

Elsewhere in the crypto world, Aleo, a privacy-focused token, jumped over 14% after being listed on Coinbase. Meanwhile, Sui (SUI) and Fantom (FTM) also saw double-digit gains, and AI tokens continued their recovery despite a weakening correlation with Nvidia, whose stock has dipped 3% in the last five days.