US Lags Global Trend on Rate Cuts, Delaying Crypto Rally: Analysts

Crypto market analysts believe it is only a matter of time before the United States joins other top economies like Europe and China in cutting interest rates.

They see this move as the key catalyst for the next major crypto bull run, a view that has gained traction after the U.S. Federal Reserve held its benchmark interest rate steady this week in the 4.25% to 4.50% range.

Related: Trump’s Attack on the Federal Reserve Creates New Uncertainty for Crypto Markets

Analysts See Rate Cut as Inevitable Crypto Catalyst

According to cryptocurrency analyst @rov

ercrc on X, Bitcoin and altcoins may continue to trade sideways or pull back until the Fed changes its policy.

He argues that an eventual rate cut will be the primary signal to trigger a significant rally, potentially sending digital asset prices to new highs. This viewpoint treats the current market choppiness as a temporary phase before a larger, policy-driven move.

Federal Reserve Holds Rates Steady, Citing “Tariff Inflation”

This week’s announcement marked the fifth consecutive time the Fed has kept its rate unchanged. The decision was made despite growing pressure from President Donald Trump, who has advocated for rate cuts to boost the U.S. economy.

Fed Chair Jerome Powell said the board remained cautious, pointing to the current economic situation and uncertainty caused by the administration’s new tariff regime, which he called the beginning of “tariff inflation.” Powell added that future interest rate decisions would depend entirely on upcoming economic data.

Why Rate Cuts are Historically Bullish for Crypto

Typically, interest rate cuts reduce the appeal of fixed income and push capital towards risk assets. Bitcoin and cryptocurrency remain at the forefront of the high-profit assets that investors turn to when seeking alternatives. The crypto market’s performance over the past year made it even more appealing, especially with the introduction of ETF products, which allow institutional investors to invest in crypto.

Related: Trump Pressures Fed Chair Powell Over Costly Renovation and Interest Rates

According to the analyst’s projection, a US interest rate cut will summarize the global economic direction. It will align with the actions of Europe and China, leading to a capital rotation towards Bitcoin and altcoins.