Altcoins experienced a significant rally on Tuesday afternoon in the U.S. following dovish remarks from Treasury Secretary Scott Bessent, who suggested that the Federal Reserve should contemplate a 50 basis point rate cut at its upcoming meeting in September. In his interview with Fox News, Bessent expressed that the Fed should have implemented a rate cut in June if it had received the correct economic data, highlighting a “foundational issue” with the central bank’s operations.
The commentary invigorated the markets, already pricing in a 25 basis point hike, with the prospect of a deeper cut boosting cryptocurrency values further. Ethereum (ETH) soared above $4,600 for the first time in nearly five years, marking a rise of over 50% in just one month. Alongside this, Cardano (ADA), Solana (SOL), XRP, Avalanche (AVAX), and Litecoin (LTC) also recorded impressive daily gains, with Cardano, Solana, and Litecoin each rising approximately 8% in the past 24 hours. Meanwhile, Bitcoin (BTC) fluctuated around $120,000, showing limited movement compared to the rest of the altcoin sector.
The rally commenced earlier in the day after consumer price data indicated inflation rising as expected for July. Market sentiment grew more optimistic as it was perceived that the dollar weakened against all major currencies, further fueling the upward trajectory of altcoins.
While Bessent’s position as Treasury Secretary gives his opinions some weight, he is not a voting member of the Federal Reserve and has been delegated by President Trump to find a replacement for Fed Chair Powell. Nonetheless, his insight appears to have stirred investor enthusiasm significantly, contributing to the overall positive movement across the cryptocurrency landscape.
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