Anticipated US Rate Cuts To Ignite Another Crypto Rally? Here’s What to Expect

• A second fed rate cut could send crypto markets into bullish territory.
• Optimistic traders anticipate Bitcoin to hit $100,000 if price trends follow the bull run after the September rate cut.
• Bitcoin has gained over 25% since the Sept. 18 federal rate cut.

According to multiple sources, the U.S. Federal Reserve is expected to make a second interest rate cut today.

This could stoke even more bullish momentum within the crypto markets, though nothing is ever guaranteed in crypto.

Fed Rate Cut

Reports have circulated that the Fed could lower interest rates by 25 basis points (bps), or 0.25%, as part of a broader and optimistic economic strategy.

Following the cut in September, which kicked off a solid bull run for Bitcoin (BTC) and crypto, traders are anticipating another big boost.

Though rate cuts may promote growth and investment through lower borrowing costs, they’re also typically signals that economic momentum is taking a downturn. Seemingly, it’s all about sentiment and why a rate cut is being called.

On Sept. 18, 2024, the Fed slashed the benchmark interest rate by 50 bps, or 0.5%, following policymakers expressing confidence in the U.S. economy’s performance against inflation.

As a result, stock markets closed the day  with mild losses and then went on to soar to record highs .

In this context, the sentiment behind the decision was positive enough to stoke a price rally in traditional markets. Crypto markets also relished the news.

In fact, the rate cut was so positive for Bitcoin and crypto that it outperformed the historically volatile month of “Redtember“, pushing BTC from lows of around $52,000 and back up above the coveted $65,000 price.

Q4 2024

With the Trump Presidency, Bitcoin exchange-traded funds (ETFs), the possibility of an entirely new approach to U.S. crypto regulations, and other novelties, Q4 2024 looks considerably bullish.

Of course, a crypto rally isn’t guaranteed. Bitcoin and the broader crypto market have become increasingly more sensitive to shifts in economic policy as digital asset investments have become intertwined with big money.

It’s not just the retail investor reaction that matters now. It’s also the major financial and corporate institutions that have sat on the frontlines and ridden the shifting tides of economic policy for decades.

Observers are looking for “in the know” money, which makes the performance of Bitcoin ETFs an important indicator in modern crypto markets.

Following the Sept. 18 rate cut, BTC ETFs saw eight consecutive days of inflows, kicking off an enduringly bullish overall inflow trend.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

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