Fed Rate Cuts Set to Ignite Crypto Bull Market Beyond Just Big Tech

Wall Street's favorite buzzword—'liquidity'—is back. And this time, it's not just pumping tech stocks.

The Fed's looming rate cuts could send fresh capital flooding into crypto markets, broadening the rally beyond Bitcoin and Ethereum. Altcoins? DeFi tokens? They're all primed for a moonshot.

Remember: When the money printer goes brrr, even the shadiest memecoins find buyers. But for once, fundamentals might actually matter.

Fed rate cuts could broaden bull market beyond Big Tech

Traders have received mixed messages as stocks have rebounded over the past two months. On one hand, the U.S. economy is still doing well, and inflation remains under control, even with ongoing worries about trade policies. Investors have been rewarded by gains not only in the largest technology shares but also in more speculative corners of the market.

Yet worries about tariffs remain fresh. On Monday, July 7, the WHITE House announced new levies on imports from Japan, South Africa, and South Korea set to take effect in August. The S&P 500 dipped 0.8% on the news, though it stays at less than 1% from its all-time high.

This bull market has been running for 32 months, but only a few companies are driving most of the gains. That’s making people worry that the whole market depends too much on just a handful of big names. Paulsen believes a shift by the Federal Reserve toward cutting interest rates in the months ahead could help widen participation.

“A lot of powerfully positive forces for stocks are being held up by abnormally tight Fed policy, and I think they’re getting close to changing that,” he said.

There are some signs of improvement among smaller companies. Recently, the Russell 2000 Index moved back above its 200-day average, a development Wald described as a potential bright spot.

“However, if small-caps start to fail and erase their recent improvements, it WOULD signal the rally might be petering out and set the stage for seasonal volatility later in the third quarter,” he warned.

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