Crypto Markets Surge as Tariff Uncertainty Fades and Fed Rate Cuts Loom

Cryptocurrency markets are poised for a bullish resurgence as geopolitical and macroeconomic headwinds subside. The fading impact of tariffs and anticipations of Federal Reserve rate cuts have reignited risk appetite, with altcoins showing early signs of momentum.

Market veterans recognize interest rate reductions as the true catalyst for crypto rallies. This cycle has diverged from historical patterns, with the EU and China implementing aggressive cuts while the Fed maintained caution. Chair Powell's reluctance to ease policy—citing tariff-related inflation concerns—now appears overcautious as latest data shows manageable price pressures.

Global liquidity conditions continue to improve, with US equities reaching record highs. Yet crypto assets remain undervalued relative to traditional markets, creating asymmetric upside potential. The coming months may see capital rotation into digital assets as monetary policy turns accommodative.