Expert Says ‘The Time Has Come’, What Could Drive | Crypto News
For the first time in 2025, the United States Federal Reserve is making ready to cut rates of interest while the S&P 500 is trading at all-time highs, and according to The Kobeissi Letter, the time has come for an important shift in markets that may usher in the next crypto market bull run.
As it stands, document stock valuations, resilient GDP growth, sticky inflation, and cracks are forming in the labor market, leaving the stage open for volatility in conventional markets that may spill over into the next explosive altcoin season.
Fed Rate Cuts At Record Valuations
Expectations are also high that the Fed will keep decreasing charges at the next rate of interest choice on Wednesday, September 17, 2025 and through the end of this 12 months. According to a prolonged thread that was posted on the social media platform X, this may have long-term bullish results on the crypto industry.
The Federal Reserve often cuts charges in the face of financial weak point and depressed equity markets, but this time is different. As famous by The Kobeissi Letter, valuation metrics tracked by Bloomberg show US shares are more costly than ever, having surpassed even the 1929 pre-Depression peak and the dot-com bubble. Furthermore, the S&P 500’s price-to-book ratio hit 5.3x in late August, its document stage.
Despite these extremes, policymakers are anticipated to cut by at least 25 foundation factors this week based on weak point in the labor market. History reveals that when fee cuts occurred with shares within 2% of all-time highs, as shown in 2019 and 2024, the S&P 500 delivered strong features over the next 12 months. This uncommon combine may once again amplify capital flows into high-growth belongings, including cryptocurrencies, in the last quarter of 2025.
A Perfect Time For Altcoins
Cutting charges into scorching inflation provides liquidity fuel just as traders chase risk belongings. That backdrop has always precipitated highly effective surges for Gold, Bitcoin, and other major cryptocurrencies, as the return of these belongings thrives when fiat returns come under query.
As The Kobeissi Letter framed it, the time has come. The Fed’s choice to cut charges with shares at document highs, amid a 3% GDP growth and scorching inflation 110 bps above the Fed’s long-term goal, could possibly be the driving force of the next altcoin season. Gold and Bitcoin have already been priced in this new period of liquidity, as both are now up by 450% and 105%, respectively, since 2023.
The setup is even better for altcoins like Ethereum, XRP, Chainlink, and most particularly cryptocurrencies concerned in the growing AI area of interest. There could possibly be more immediate-term volatility, but long-term asset house owners will benefit the most from the speed cut.
However, if the Federal Reserve opts for a slower tempo of cuts than markets are at present pricing in, the frustration may ripple through both equities and cryptocurrencies and trigger short-term declines this week.
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