The US Federal Reserve is poised to reduce interest rates, potentially triggering the start of the upcoming surge in cryptocurrency prices. The recent Consumer Price Index (CPI) figures for August mostly aligned with market forecasts, with the exception of a 0.3% rise in monthly core CPI, surpassing the anticipated 0.2% increase. This inflation data reinforces the market’s expectation of a 25 basis points rate reduction at the upcoming Federal Open Market Committee (FOMC) meeting on September 18th. This move is anticipated to inject fresh capital into both US stock and cryptocurrency markets.
Smart investors are turning to assets like Bitcoin, Solana, and emerging low-cap tokens such as Memebet Token and Crypto All-Stars. The CPI reading of 2.5%, lower than the previous month’s 3.0%, indicates a cooling inflation trend in the US economy, paving the way for potential quantitative easing by the Federal Reserve.
Market indicators like the CME FedWatch suggest an 87% probability of a 25 bps rate cut and a 13% chance of a 50 bps cut. A 50 basis point cut could lead to a significant market rally, potentially setting the stage for a bullish trend. Analysts suggest that even if a major cut does not happen in September, it remains a possibility in the November and December FOMC meetings, with some predicting a total rate cut of 125 bps by the end of the year.
The outlook for Bitcoin appears optimistic, with experts projecting continued growth. Bernstein anticipates Bitcoin reaching $90,000, particularly if Donald Trump secures victory in the November election. The cryptocurrency market could see altcoins taking the lead in the next bull run. Whales are showing strong support for altcoins like Solana, which could perform well in the upcoming market surge.
Overall, the upcoming crypto market rally is expected to be led by altcoins, with potential for significant returns. New projects like Memebet Token and Crypto All-Stars are generating notable interest, with investors eyeing considerable gains. The enthusiasm for cryptocurrency investments is on the rise, as experts foresee a prosperous period for the digital asset market.