With the Federal Reserve expected to cut rates, discussions now focus on the extent of the cut and its potential impact on crypto markets. Recent Consumer Price Index (CPI) data indicates a 0.4% increase in August, reflecting moderated inflation, thus supporting rate cut expectations. The market now fully anticipates a 25 basis points (bps) cut, up from earlier predictions, which could bolster investor confidence in risk assets. Notably, Bitcoin reached a high of $114,700 recently, with analysts suggesting the next key resistance level lies just above $115,000. Furthermore, a Fed rate cut could draw investors to alternative cryptocurrencies, particularly Solana and XRP, which await ETF approvals. Corporate interest in Solana is increasing, though still smaller compared to Bitcoin and Ethereum acquisitions. Overall, the outlook for crypto is increasingly optimistic as inflation trends shift, providing potential growth avenues for both Bitcoin and emerging tokens in the ecosystem.

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