The crypto market has struggled to gain momentum since October. The market dip was triggered by macroeconomic uncertainties, especially the low chances of a rate cut after October’s 25 basis point dip. However, the Federal Reserve still rolled out another interest rate cut in December. Both interest rate cuts did little to push the crypto market, given the larger economic condition. The Federal Reserve has now said that it may roll out more interest rate cuts, but will do so with caution. Let’s discuss if another rate cut could trigger a bull run for the cryptocurrency market.
Will The Crypto Market Rebound After Another Interest Rate Cut?
The current cryptocurrency market situation arises from investors moving away from risky assets. Market participants seem to be pivoting to safe havens, such as silver and gold. The argument is supported by the fact that both commodities have hit multiple all-time highs over the last few months.
Macroeconomic uncertainties have barred the crypto market from rallying, despite two interest rate cuts in the last three months. October’s cryptocurrency market crash was especially surprising, given that the month has historically been quite bullish. Moreover, the Federal Reserve also rolled out an interest rate cut in October.
Hence, there is no guarantee that the cryptocurrency market will pick up the pace after another interest rate cut. However, if macroeconomic conditions improve, we may see a trend reversal.
Bernstein and Grayscale anticipate Bitcoin (BTC) to hit a new all-time high in 2026. Both financial institutions claim that the original cryptocurrency follows a 5-year cycle and not a 4-year cycle. This means that BTC will climb to a new peak next year, 5-years after the 2021 peak.
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Barclays, on the other hand, anticipate the cryptocurrency market to face challenges in 2026. The platform anticipates a bear market due to decreased spot trading and low demand for crypto assets