Fed’s Shock Move: Could Bitcoin and Altcoins Soar Next?

Fed Official’s Rate cut Hint Sparks Crypto Optimism

bitcoin and altcoins might soon see a price surge. This prediction follows a surprising statement from a top Federal Reserve official. christopher Waller, a Federal Reserve Governor, suggested that the central bank could lower interest rates as early as July. He pointed too a slowing economy and said that tariffs’ impact on inflation would be brief and minor.

Waller believes the Fed’s current benchmark rate is above the neutral rate. He thinks there’s room to reduce it and observe the inflation effects. “We’ve been on hold for six months, and the data looks good so far,” he noted.

His comments came after the Fed kept rates steady between 4.25% and 4.50% but hinted at two more cuts this year. President Trump has also pressured the Fed for a full point cut, citing the European central Bank’s eight rate cuts since last year.

A Fed rate cut could boost Bitcoin (BTC) and altcoins like Ethereum (ETH),Solana (SOL),and Cardano (ADA). Historically, these assets perform well during rate cuts, as seen during the COVID pandemic.

Third-party data shows rising demand for Ethereum and Bitcoin from Wall Street investors, possibly anticipating a Fed policy shift.Spot Bitcoin ETFs added $389 million in inflows on Wednesday,totaling $2.28 billion this month. Over three months, inflows exceed $10 billion, with cumulative inflows reaching $46.65 billion.

Spot Ethereum ETFs have also seen nearly $1.5 billion in inflows over three months, with total inflows nearing $3.9 billion. These inflows explain the declining supply of Bitcoin and Ethereum on exchanges and could lead to price rebounds soon.