The post Fed Rate Cuts May Fuel Massive Crypto Rally—Altseason on the Horizon appeared first on Coinpedia Fintech News
A popular crypto analyst predicts a massive surge in Bitcoin and altcoins as the U.S. Federal Reserve is now 99.9% likely to cut interest rates this month.
Crypto trader and market analyst Cyclop believes the rate cut could push Bitcoin to a new all-time high of $130,000, followed by a large-cap altcoin rally and the start of a full-blown altseason. However, he cautions that short-term volatility is likely during this period.
According to Cyclop, current market indicators show a 99.9% probability that the Federal Reserve will reduce interest rates in June 2025.
Recent U.S. economic data supports this claim:
Historically, interest rate cuts have been bullish catalysts for crypto markets. Lower rates boost liquidity, reduce borrowing costs, and encourage risk-on investment behavior, leading to:
“Cheaper borrowing and rising liquidity create a perfect storm for crypto rallies,” notes Cyclop.
In early 2023, after a significant rate cut, Bitcoin surged by over 20% within weeks. But not all rate cuts guarantee bullish outcomes.
In 2024, a minor 25 basis point cut led to a 6% drop in BTC shortly after, highlighting the importance of broader macro conditions.
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According to Cyclop, the bullish impact of a Fed rate cut on Bitcoin and altcoins will depend on three key conditions:
Currently, inflation is at 2.4%, and unemployment sits at 4.2%. Meanwhile, Trump’s tariffs are still being reviewed by a U.S. appeals court. A final decision is expected after July 31, but reports hint at a potential deal with China on rare earths and new tariff agreements with other nations.
If these conditions align with the Fed rate cut, Cyclop sees Bitcoin climbing to $130,000 in 2025. He also predicts that altseason could peak in November or December. However, he warns that short-term market fluctuations are inevitable, even if long-term sentiment remains bullish.
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