Top altcoins show growth amid US Federal Reserve policy

The cryptocurrency market continues to grow for the second day in a row, fueled by expectations of more aggressive Fed rate cuts. In the second half of the US trading session, altcoins gained sharply after Treasury Secretary Scott Bessent said on Fox News that the Federal Reserve should consider cutting its key rate by 50 basis points in September. He added that the Fed could have taken this step as early as June if it had «accurate data,» calling it a «fundamental problem» for the central bank.

Prior to Bessent’s comments, the market had almost entirely priced in a 25 basis point cut, but the possibility of a double cut has spurred a new influx of buying. Although Bessent is not a member of the Fed, his words carry weight, as President Donald Trump has tasked him with choosing a successor to current Fed Chairman Jerome Powell.

Ethereum reacted particularly strongly, rising by almost 9% overnight and exceeding $ 4,600 for the first time since November 2021. Cardano ADA $0.87 Cardano 4.43% Market capitalization $31.73 billion VOL. 24 hours $0.26 billion , Solana SOL $199.00 Binance-Peg SOL 6.11% Market capitalization $0.22 billion VOL. 24 hours $1.53 billion , and Litecoin LTC $129.81 Litecoin 3.23% Market capitalization $9.89 billion VOL. 24 hours $0.16 billion grew by about 8%, while XRP XRP $3.26 XRP 0.74% Market capitalization $193.61 billion VOL. 24 hours $0.7 billion added 3.5%.

Bitcoin remained relatively stable, trading near $ 120,000, almost unchanged over the day. Analysts note that this time, the leadership in market growth belonged to altcoins, while BTC bulls remained on the sidelines.

The growth of cryptocurrencies began on Tuesday morning after the publication of data on consumer prices in the United States, which in July rose roughly in line with forecasts, which increased expectations of monetary policy easing. On the back of this news, US stock indices also rose by more than 1%, and the dollar weakened against all major currencies.