U.S. Treasury Secretary Scott Bessent has called for a 50 basis point rate cut in September, following weak job revisions and slightly higher inflation data. The July inflation rate was reported at 2.7% year-over-year, slightly above forecasts, which has led to increased expectations for looser monetary policy. Bessent indicated that a cut would lower borrowing costs and encourage investment in riskier assets, potentially benefiting the crypto market. Following these developments, crypto assets rallied, with Ethereum reaching multi-year highs amid positive sentiment. Bessent's remarks come after significant downward revisions of job figures by the Bureau of Labor Statistics. Analysts suggest that a rate cut could further fuel optimism in the crypto sector, driving investment towards altcoins as well. As traders position themselves in anticipation of the CPI print, the potential for deeper rate cuts has invigorated trader sentiment in cryptocurrency markets, signaling a possible 'risk on' environment for the remainder of the year.

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