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Ethereum Expected to Soar Amid Global Interest Rate Cuts
Merkle Capital Predicts Surge in Bitcoin and Cryptocurrency Investments
Bitcoin prices projected to rise following global interest rate reductions
An investment advisory firm, Merkle Capital, anticipates a surge in Bitcoin prices and a significant increase in cryptocurrency investments in the upcoming month. This comes in light of the recent trend of falling interest rates worldwide. According to Merkle Capital’s investment advisor, Woramet Chansen, Bitcoin saw a substantial 25% increase in value in September after the US Federal Reserve made its first rate cut in four years, lowering rates by 0.50 percentage points.
Ethereum Poised for Significant Growth
Merkle Capital foresees notable growth potential for not just Bitcoin but also other cryptocurrencies, particularly Ethereum, in the following month. This optimistic outlook is fueled by the Fed’s dot plot released in September, which suggests a total of 2.5 percentage points in interest rate cuts by the end of 2026, including the recent reduction. This projection would bring the fed funds rate target range to 2.75-3.00% in 2026, presenting a promising opportunity for risk assets based on fundamental analysis and statistics.
Stablecoin Supply at Record Levels
Increasing Confidence in Crypto Market
Stablecoin supply has reached its peak in two years, indicating a strengthened belief among investors in the crypto market. This surge in stablecoin supply serves as a crucial example of investors’ growing confidence in the market’s stability, as highlighted by Mr. Woramet from Merkle Capital.
Rising Market Cap of Altcoins
Altcoins, excluding Bitcoin and Ethereum, have seen a market cap increase of over 25% in the past six months, surpassing a significant test level. This surge reflects investor trust in the cryptocurrency market, particularly in the Ethereum ecosystem, which has outperformed other digital currencies, according to the investment firm.
Positive Outlook for Crypto Investments
Short-to-Medium-Term Prospects Favorable
Despite potential risks such as geopolitical tensions, the short-to-medium-term outlook for crypto investments remains positive. Merkle Capital’s Chief Commercial Officer, Mana Khanijou, emphasized the current economic recovery direction for cryptocurrency investments, despite possible market uncertainties.
Future Factors Affecting Bitcoin Price
US Presidential Election Impact
As the Bitcoin price hovers between US$50,000-55,000 post-halving period, factors like the weakened US dollar and lower interest rates continue to support its value. With the impending US presidential election in early November, attention shifts to potential policies that may influence cryptocurrencies, particularly depending on the election outcome.
Bitcoin and Ethereum remain attractive investment options as alternative assets, as investors increasingly buy them through spot exchange-traded funds, according to Sukit Udomsirikul, managing director and head of research at InnovestX Securities.
The information in the article is for informational purposes only. It does not constitute any investment advice. The author and CryptoBlockNews.com are not responsible for your profits or losses arising from your investments. Investment is ultimately based on many foundations such as knowledge, accumulation, experience, research and personal decisions.
