Dovish Fed Sparks Bitcoin Rally: $150K, ETH $7K, Altcoins
After Fed Chair Powell’s dovish remarks, markets price a 25bp September rate cut. This Fed rate cut outlook fuels a Bitcoin rally. BTC could surge to $125K–$150K by year-end. Ethereum ETFs netted $2.5 billion inflows, while Bitcoin funds saw $1 billion outflows. Analysts warn that sustained inflation could delay cuts and cap gains. A successful soft landing may unlock fresh liquidity. This sets the stage for the next Bitcoin rally and a broad altcoin season. Small-cap tokens look poised for outsized moves. The stablecoin market could expand tenfold to $1.2 trillion by 2028. Traders should monitor rate signals, ETF flows and macro data.
Bullish
The Fed’s dovish stance and a priced-in 25bp rate cut have boosted liquidity and risk appetite, driving capital into crypto. Fund flows reveal $2.5 billion into Ethereum ETFs versus $1 billion exiting Bitcoin funds, signaling diversified investor interest. Analyst forecasts for BTC at $125K–$150K and ETH at $6K–$7K, along with a shift toward small-cap altcoins, point to a bullish cycle. A successful soft landing would further fuel institutional inflows. Together, these factors support both short-term rallies and a longer-term uptrend in crypto assets.