Crypto rally driven by rate cut talk

Altcoins push higher in late U.S. trading after policy talk, while Bitcoin holds gains.

Crypto rally lifts ETH ADA XRP on rate cut talk

Late Tuesday in U.S. trading, altcoins led the rally after remarks attributed to a political figure about a potential rate cut. The Treasury Secretary said the Fed should consider a 50 basis point cut in September, describing data as a foundational issue for the central bank. Markets had mostly priced in a 25 basis point move, and the talk of a larger cut added upside pressure.

Ether jumped nearly 9 percent in the last 24 hours and rose above 4600 dollars, a level not seen since 2021. Cardano, Solana and Litecoin each gained about 8 percent, while XRP rose about 3.5 percent. Bitcoin stayed around 120000 dollars, with the dollar weakening against major currencies. The rally followed July consumer prices data that came in roughly in line with economists’ estimates, helping lift broader risk assets.

Bessent is not a Fed official, and his remarks come with the caveat that he is a political appointee. Still, his influence is noted because he led a task force expected to nominate a replacement for the current Fed chair, Powell. The response shows how policy chatter can tilt markets even when data remains ambiguous.

Policy signals often move fast in crypto markets, sometimes faster than the underlying fundamentals. When a high profile political figure hints at easier policy, traders may push bets beyond what the data warrants. This episode highlights how crypto markets can swing on sentiment and leadership narratives as much as on inflation figures or growth data.

The situation also exposes a tension between political influence and independent central banking. If policy talk becomes a regular driver of price action, investors face higher volatility as the next data release could contradict the latest chant from the lobby or the podium. For readers, the lesson is simple: follow the data, but watch the voices behind the data.

Highlights

Policy signals will continue to shape markets as data and leadership narratives evolve.