BNB hits $1,000 for first time as altcoins outpace bitcoin after Fed rate cut

Crypto markets held an upside post-FOMC footing on Thursday after the U.S. Federal Reserve cut interest rates by 25 basis points to a 4%–4.25% target range, with several large-cap altcoins outpacing bitcoin.

Binance's BNB briefly crossed $1,000 for the first time on record before paring gains, according to The Block's price data. At last check, bitcoin traded around $117,300, ether near $4,600, solana around $246, and XRP near $3.03. BNB eased to roughly $993 after the milestone push.

The Fed’s decision, its first reduction since December 2024, came with guidance that left the door open for more easing this year. Markets had largely leaned that way into the meeting, and traders quickly refocused on how soon the next cut might land.

Most major cryptos rose over 2% on Sept. 18, while the GMCI 30 Index, which tracks crypto's 30 largest assets, also trended upwards on the day as the market saw broad gains. "Altcoins are outpacing BTC for now as liquidity is beginning to rotate rather than sit on the sidelines," Nic Puckrin, CEO of Coin Bureau, told The Block. He called the Fed’s move a "risk-management cut" that keeps investors parsing forecasts and Powell’s tone for clues on cadence. Alts may reverse if further guidance is vague, he said.

"Bitcoin rallied into the decision, saw modest gains, but this suggests upside is actually constrained unless the Fed signals future cuts more aggressively," Puckrin continued. "Altcoins, meanwhile, might be set to face sharper corrections if sentiment turns sour. The ‘sell the news’ dip potential is strong if forward guidance is cautious. Markets can’t trust in an uncertain future."

Timothy Misir, head of research at BRN, said bitcoin's intraday pop "was a liquidity bid with some distribution underneath," pointing to cooling ETF momentum and waves of exchange deposits that suggest traders booked profits. U.S. spot BTC ETFs recorded $51.28 million net outflows on Wednesday, the first outflow after a seven-day inflow streak, while Ethereum ETFs were roughly flat with $1.89 million outflows.

"Treat today as a high-probability volatility window," Misir shared. "The Fed rate cut gave crypto a near-term lift, but the rally is not yet clean. Institutional flows are supportive overall, yet exchange inflows and a single-day ETF outflow signal distribution into strength."

Misir flagged $118,000 as the near-term "liquidation/resistance zone," with support at the $115,000–$115,500 level. BRN also noted a single-day flip to modest net outflows in U.S. spot bitcoin ETFs on Wednesday and a mixed derivatives picture. BTC and SOL perp open interest logged a drawdown, while ETH/XRP/BNB are up, a market structure consistent with rotation inside leverage pools.

"Watching #BNB go from $0.10 ICO price 8 years ago to today's $1000 is something words cannot explain," CZ said in a post on X. "I, not representing any entity or title, as just a community member and a #BNB holder, thank everyone in the #BNB and crypto ecosystem, for your support. We had our challenges along the way, but we worked hard, we built, and we held."