Fed Prepares to Cut Interest Rates – The Key to Unlocking a New Growth Cycle for Crypto

Many analysts in the crypto market believe that it is only a matter of time before the Federal Reserve of America (Fed) takes the step that many major economies like Europe and China have chosen – cutting down the whales.

This move is seen as the key to unlocking the next strong growth wave of the crypto market, especially after the Fed just decided to keep the benchmark interest rate unchanged at 4.25% – 4.50% this week. Analyst: Falling Interest Rates Will Be a Signal to Start a Bull Run According to cryptocurrency analyst @rovercrc on social media X, Bitcoin and altcoins may continue to move sideways or make slight adjustments until the Fed changes its policy.

He believes that cutting down the whales will be a key signal to trigger a strong growth wave, potentially bringing the prices of digital assets to new heights. Currently, the "stagnation" phase of the crypto market is seen as an accumulation phase before the storm – waiting for a policy push from the Fed. Fed Keeps Interest Rates Unchanged, Warns of "Tariff Inflation" The decision to keep interest rates unchanged this time marks the fifth consecutive time the Fed has not changed the interest rate. This occurs despite pressure from President Donald Trump, who has repeatedly called for cutting down the whales to support economic growth in America.

Fed Chairman Jerome Powell emphasized that the board remains cautious, especially in the context of the American economy facing uncertainties from the new administration's tariff policies. Powell referred to this as the beginning phase of "tariff inflation," while asserting that all future interest rate decisions will depend entirely on upcoming economic data. Why Cutting Down Interest Rates Often Has a Positive Impact on the Crypto Market? History shows that cutting down the whales often reduces the attractiveness of fixed-income investments such as bonds, leading to a trend of capital flowing into higher-yielding risk assets.

Bitcoin and cryptocurrencies are always among the asset classes prioritized by investors seeking superior profit opportunities. In addition, over the past year, the crypto market has become more attractive with the emergence of Bitcoin ETF funds, paving the way for large capital flows from institutional investors. This means that any monetary easing policy from the Fed could drive significant capital into the market. Cutting Down the Whales: A Consensus Point of the Global Economy If the Fed cuts interest rates, this move will be in sync with the trends of other major economies such as Europe and China. This global consensus could create a wave of large-scale capital shifting from traditional assets to Bitcoin and altcoins, creating a new bullish cycle for the entire crypto market. 💡 Conclusion: The crypto market is in a "spring compression" phase – moving sideways and accumulating while waiting for signals from America's monetary policy. When the Fed officially cuts interest rates, this could be the strongest catalyst to initiate the next bull run, taking Bitcoin and altcoins to new heights.