Bitcoin and Altcoins May Surge in July Amid Fed Rate Cut Speculation
The crypto market could see a significant boost in July, thanks to a surprising statement from Jerome Powell, the Federal Reserve Chair. Powell hinted that the Fed might cut interest rates as early as the July meeting.
Jerome Powell, the federal Reserve Chair, recently hinted at a possible interest rate cut in July. This is a significant shift from his previous stance. Powell stated, “ItS going to depend on the data. We are taking it meeting by meeting.” This uncertainty has sparked interest in the crypto market.
Some Fed officials, like Christopher Waller and Michele Bowman, support a July rate cut. They believe that Donald Trump’s tariffs have a limited impact on inflation. Though, traders and the futures market remain skeptical.polymarket data shows a 17% chance of a July cut, while the CME FedWatch tool puts it at 19.1%.
A rate cut would be great news for Bitcoin (BTC) and altcoins. it would lower the cost of holding non-yielding assets and boost investor risk appetite. This scenario is similar to the COVID-19 pandemic when rates were slashed to zero, benefiting cryptocurrencies.
Additionally, Donald Trump’s Big Stunning Bill, which includes tax cuts and reduced regulations, could also boost crypto investments. While a July cut isn’t certain, many analysts expect one in September, with odds over 75%. Goldman Sachs predicts three cuts this year, and Morgan Stanley sees seven in 2026.
Bitcoin and altcoins have other factors driving their growth. Bitcoin demand is rising, with spot ETF inflows nearing $50 billion. Companies like Coinbase and Block are accumulating Bitcoin. The SEC may approve several altcoin ETFs this year,with an 85% chance for an XRP ETF and a 99% chance for Solana (SOL). Regulatory clarity is also attracting more investors. The US Senate has passed the GENIUS Act, focusing on the stablecoin industry. This could lead to more inflows among investors.
Other catalysts include rising Bitcoin demand and potential ETF approvals. The GENIUS Act, focusing on stablecoins, adds to the positive outlook. These developments could push prices higher, making July a potentially bullish month for the crypto market.
- Bitcoin demand is increasing,with spot ETF inflows nearing $50 billion.
- More companies are accumulating bitcoin.
- The SEC may approve several altcoin ETFs, further boosting the market.
These factors, combined with the Fed’s potential rate cut, could lead to a strong rally in July.
