With Trump’s presidency, altcoins embarked on a thrilling ascent. However, the rapid rise was followed by days where meme coins drained liquidity and tariffs stifled risk appetite. Now, as the end draws near for tariffs, Fed members have begun to share their rate cut forecasts. Why are the skeptics wrong about the bullish prospects?
Will Cryptocurrencies Rise?
Those who have spent a few seasons in cryptocurrency markets have learned that interest rate cuts are the true catalyst for rallies. This particular season has been distinct, with central banks in the EU and China embarking on aggressive rate cuts, while the Fed, having started reductions just before elections, paused its course. Although Trump claims this decision was political, he must tolerate Powell until May 2026.
Since February, and increasingly from April onward, the Fed Chair has been avoiding cuts, citing the need to “see the impact of tariffs on inflation.” Today’s inflation data indicates that while tariffs have not been devastating, they have contributed to rising inflation. Since interest rates are already above inflation, even limited tariff impacts justify enough room for reductions.
Meanwhile, global liquidity is charging to new highs. US stock markets have reached all-time record levels this week. However, cryptocurrencies remain on the sidelines. All these factors point to a surge in cryptocurrencies, with diminishing tariff uncertainty starting in July, anticipated altcoin ETF approvals in October and November, and Trump’s signing of GENIUS scheduled for August.
Experts Predict Surge
Michael Poppe looks to the gold chart as evidence of geopolitics calming. Prices remain high, yet growth has shifted into a downward trend, indicating a similar decline in risk market fears.
Yoddha predicts the total market capitalization of cryptocurrencies will transition from $3.24 trillion to a new ATH at $5 trillion.
Finally, ANBESSA reported that the altcoin king has now progressed to an all-time high.
“The Adam&Eve formation happened, testing $883 near the $800 target.
Here’s the next simple formation;
-> Descending broadening wedge continuation formation.
Targeting ETH’s new all-time record price.”
