The US Federal Reserve is poised to reduce interest rates, potentially sparking the next surge in the crypto market. August’s CPI data aligned with market forecasts overall, with the exception of a 0.3% rise in monthly core CPI, surpassing the expected 0.2%.
Recent inflation figures have not altered the market’s anticipation of a 25 bps rate cut during the upcoming FOMC meeting on September 18th. This move is anticipated to inject new funds into both US stock and crypto markets. Consequently, savvy investors are accumulating assets like Bitcoin, Solana, along with emerging low-cap tokens such as Memebet Token and Crypto All-Stars.
Bitcoin’s price analysis indicates a current CPI rate of 2.5%, notably lower than the previous month’s 3.0%, signaling a cooling inflation trend and paving the way for the Federal Reserve to initiate quantitative easing. The CME FedWatch tool shows an 87% probability of a 25 bps rate cut and a 13% likelihood of a 50 bps cut.
The possibility of a 50 bps rate reduction could trigger a significant market response and potentially fuel a substantial rally. Even if this cut doesn’t materialize in September, there is a strong chance of it happening in the following FOMC meetings in November and December, with some analysts suggesting a total reduction of 125 bps this year.
This promising outlook for Bitcoin suggests a potential rally to $90,000, particularly if certain political outcomes occur. There is growing speculation that Bitcoin’s price could reach triple digits this year, but it’s crucial for the bulls to safeguard key support levels to avoid bearish scenarios.
The upcoming crypto bull market is expected to be led by altcoins. Whales continue to show enthusiasm for coins like Solana, indicating a positive trend for meme coins related to Solana. The rise of GambleFi altcoins, including successful projects like Rollbit Coin, and the emergence of new coins like Memebet Token are attracting significant interest from investors.
Many experts foresee these new projects as potential 100x gainers. Additionally, coins like Crypto All-Stars are gaining traction, with the promise of unique features like the MemeVault staking model. These low-cap gems are drawing attention, with some predicting substantial returns on investments.