FED Rate Cut Could Spark Major Altcoin Rally
Market history shows bullish trends after a FED rate cut. Could altcoins be next to soar?
- Historical FED rate cuts have triggered massive market rallies
- Bitcoin surged 77% after the last 50bps cut in 2024
- Altcoins could lead the next phase of the market pump
Many traders are expressing doubt about the market impact of the upcoming FED rate cut, but history paints a different picture. We’re now in a remarkably similar position to where we were during the last major rate reduction by the U.S. Federal Reserve—and the results back then were explosive.
On September 18, 2024, the FED cut rates by 50 basis points, and what followed was a 77% rally in Bitcoin over the next three months. This wasn’t an isolated pump—the entire market surged, sending shockwaves through both crypto and traditional finance.
A Familiar Setup—But This Time It’s Altcoins’ Turn
Unlike what typically happens before a bullish catalyst, the current crypto market hasn’t been overheating. In fact, we’ve seen over two months of sideways consolidation, with neither bulls nor bears taking control. This cooling-off period is eerily similar to the environment leading up to the 2024 rate cut.
What’s different now? The altcoin market is positioned to lead. With Bitcoin already capturing institutional interest, many believe the next wave of capital will rotate into altcoins, especially if the macroeconomic backdrop stays supportive.
Importantly, every instance where the FED cut rates while the S&P 500 was at all-time highs has resulted in positive market performance one year later, reinforcing the long-term bullish view.
Short-Term Volatility, Long-Term Growth
Volatility is expected in the short term. Bitcoin could dip toward $112.5k as a potential support level. But this doesn’t change the broader outlook—macro conditions are aligned for further upside.
With inflation cooling, a supportive FED, and growing institutional interest, a FED rate cut could be the spark that launches the altcoin market to new highs.
Read also:
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- Fidelity Buys 397 Bitcoin Worth $46.5 Million
- FOMC Decision Today: Will Crypto Pump or Dump?
- BlackRock Buys $209M Worth of Bitcoin
- Trump-Backed American Bitcoin ($ABTC) Debuts on Nasdaq
