Crypto rally extends as Fed easing bets grow

A broad macro backdrop supports risk assets as Bitcoin and Ether push toward multi year highs, while traders weigh policy signals and liquidity.

Bitcoin and Ether Rally Breaks Higher as Fed Easing Hopes Rise

Bitcoin climbed toward 123000 dollars during the U.S. session, adding to a four week high after earlier moves to about 122300 and above 123000 on separate days. Ethereum also advanced, trading around 4750 and within striking distance of its 2021 peak near 4865. Major altcoins joined the rally, with Solana topping 200 dollars and Uniswap and other tokens rising several percent.

The wider market environment helped fuel crypto gains, as the S&P 500 and Nasdaq hovered near record levels on softer inflation signals and bets on easier policy. A note from 10x Research argues that credit and loan growth are helping create favorable conditions for a longer run, even as the Federal Reserve remains reluctant to cut rates. Analysts say investors are pricing in a September rate cut with high confidence, while policymakers face pressure to consider deeper easing. The report notes that Bitcoin and equities are moving ahead, but pricing may not yet reflect what lies ahead for policy and risk assets.

The rally fits a pattern of crypto moving in lockstep with broader risk appetite when liquidity looks ample. If the Fed shifts course, money could pour into higher beta assets faster than expected, lifting not just Bitcoin and Ether but the entire altcoin complex. Yet the upside is not guaranteed. A policy misstep or a shift in liquidity could widen swings and test risk controls for smaller tokens. In short, sentiment is strong but brittle, dependent on what central banks do next and how much liquidity stays in the system.

Highlights

The coming weeks will reveal whether this momentum is sustainable or a temporary lift.