Fed Rate Cut Fuels Crypto Bull Run: Bitcoin, Ethereum & Altcoins Rally!

The first U.S. interest rate cut in nearly four years is making waves across global markets, with stock indexes, precious metals, and crypto assets all showing noticeable impacts.

During the mid-London session, the total crypto market cap surged by nearly 2% in the past 24 hours, reaching around $2.24 trillion on Thursday. Crypto traders rejoiced as Bitcoin’s price climbed above $62,000, while altcoins like Ethereum, Avalanche, and Solana led a broader market recovery.

This bullish momentum has reduced fears of further market capitulation. Bitcoin’s Fear and Greed Index now stands at 49, indicating neutral sentiment among traders.

Understanding the Long-Term Rate Impact

While the U.S. quantitative easing measures have sparked optimism, some Wall Street analysts urge caution. Arthur Hayes, co-founder and CIO of BitMEX, warned that the Federal Reserve’s 50 basis points rate cut could lead to a “nuclear catastrophe” for financial markets before a long-term rally takes hold.

Hayes also noted that the rate cuts signal deeper issues within the global financial system. Historically, Fed-led quantitative easing with 0.5% rate cuts has triggered stock market pullbacks before eventual recoveries.

Despite warnings from analysts, many traders are keeping a close eye on Bitcoin’s historical “Uptober” trend, which has often delivered strong gains for the asset in the final months of the year.

Whales Pull Back as Demand Declines

On-chain data suggests whale investors are slowing down their buying activity. The demand for spot Bitcoin and Ethereum in the U.S. has notably decreased, with large holders, including those led by Ceffu, offloading significant volumes of assets in recent times.

Also Check Out: Ethereum Whale Offloads $24.7 Million in ETH Over 3 Days, Shows No Signs of Stopping 

The Fed’s rate cut has ignited a crypto bull run, but will this momentum last? Only time will tell.