# Federal Reserve Implements 25 Basis Point Rate Reduction ▴ News

**Published:** 2025-09-18
**Categories:** News

---

The Federal Reserve’s adjustment of the federal funds rate initiates a systemic recalibration of liquidity conditions for the entire digital asset ecosystem. This action directly alters the foundational cost of capital, which ripples through derivatives pricing, stablecoin yield mechanics, and institutional risk modeling. The immediate consequence is a marked increase in market volatility as automated systems and discretionary traders reposition large-scale portfolios to align with the new cost-of-leverage reality.

This cascade effect is most visible in the perpetual swaps market, where funding rates adjust to reflect the updated cost of carry, triggering significant liquidation events for over-leveraged positions. The event demonstrates the digital asset market’s deep integration with macroeconomic policy shifts.

The policy pivot creates a new baseline for asset valuation, forcing a system-wide repricing of risk and re-evaluation of leveraged positions.

- 
**Rate Adjustment** ▴ 25 basis point reduction

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**New Policy Rate Upper Bound** ▴ 4.25%

- 
**Immediate Market Impact** ▴ Over $105 million in leveraged positions liquidated within 30 minutes of the announcement.

Signal Acquired from ▴ <a href="https://cryptonews.com/news/live-fed-rate-cut-decision-crypto-bitcoin-2025-09-17/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" target="_blank" rel="nofollow">cryptonews.com</a>

**Tags:** [Open Interest](https://options.greeks.live/area/open-interest/), [Monetary Policy](https://options.greeks.live/area/monetary-policy/), [Basis Points](https://options.greeks.live/area/basis-points/), [Market Volatility](https://options.greeks.live/area/market-volatility/), [Perpetual Funding](https://options.greeks.live/area/perpetual-funding/), [Funding Costs](https://options.greeks.live/area/funding-costs/)	

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**Original URL:** https://options.greeks.live/news/federal-reserve-implements-25-basis-point-rate-reduction/
