The US Federal Reserve is poised to reduce interest rates, potentially igniting the upcoming crypto bull market. August’s Consumer Price Index (CPI) report aligned with market forecasts, except for the core CPI, which rose by 0.3% instead of the expected 0.2%. The recent inflation figures reinforce the anticipation of a 25 basis points rate cut at the upcoming Federal Open Market Committee (FOMC) meeting on September 18th, which is anticipated to infuse fresh capital into both US stock and crypto markets.
Investors are already accumulating assets like Bitcoin, Solana, as well as emerging low-cap cryptocurrencies such as Memebet Token and Crypto All-Stars in anticipation of the potential rate cuts by the Fed. The current economic scenario suggests a conducive environment for the Federal Reserve to begin quantitative easing with the cooling down of inflation levels, strengthening the likelihood of rate cuts.
The market sentiment is leaning towards a 25 basis points rate cut, with a 87% probability currently indicated by CME FedWatch, while a surprise 50 basis points cut could trigger a considerable market reaction. Even if a 50 basis points cut doesn’t materialize in September, there is a strong possibility that it may occur in the subsequent FOMC meetings in November and December, according to analysts’ projections.
This optimistic outlook is particularly favorable for Bitcoin, with experts projecting substantial price targets like $90,000 by Bernstein and the potential for triple-digit prices within this year. Maintaining crucial support levels like $52,000 to $53,000 and the 50-week Exponential Moving Average near $54,220 will be essential for Bitcoin to steer clear of bearish scenarios.
As the cryptocurrency market gears up for the next bullish cycle, altcoins are expected to take the lead. Notably, whales are bullish on Solana’s performance in the upcoming bull run, with significant investments being made in SOL tokens. Newly emerging altcoins in the GambleFi sector, like Rollbit Coin and Memebet Token, are gaining traction, with the latter specifically gaining attention for its unique meme coin-based casino concept.
Discerning crypto enthusiasts are eyeing new opportunities in low-cap gems like Crypto All-Stars, which has raised substantial funds in its ICO and is introducing an innovative meme coin staking model called MemeVault. The crypto space is abuzz with anticipation as these new ventures show promise, with experts predicting significant returns of up to 30 times for tokens like STARS.
In summary, the crypto market is on the cusp of a potential bull run, driven by market expectations of Fed rate cuts and the influx of fresh capital. Altcoins and innovative crypto projects are attracting attention, indicating a vibrant period ahead for the digital asset space.
[Original article source: Finbold.]