Altcoin Rally 2025 Fueled by Fed Rate Cut Hopes & Policy Clarity

• The altcoin market has achieved a record $1.72 trillion valuation.
• Experts expect the crypto market to surge higher in 2025.
• A potential interest rate cut tops the reason behind the expected crypto market rally.

A cryptocurrency analyst renowned for his podcast presentations has explained what he thinks is behind the remarkable growth observed across the digital asset ecosystem in 2025. The analyst stated his observations after the altcoin market achieved a record $1.72 trillion valuation early Saturday morning.

Related: Rate Cut Hype Reaches New Highs as Analyst Points to 92% Chance for September FOMC

Why the US will cut interest rates

According to the analyst, widespread expectations that the US Federal Reserve will cut interest rates soon comprise one of the main reasons behind the increasing demand for risk cryptocurrencies. 

The analyst highlighted statements from several experts in the financial industry who have stated why an interest rate cut of up to 50 basis points (bps) could be ideal for the US economy.

Among such highlights are increasing unemployment rates, which rose to 4.3% as of the last report from the US government, and spiking Initial Job-Loss Claims, which reached a significant unseasonal 263,000. The government also reported a Job Openings/Available Workers of <1, leaving investors and economic observers expectant of an imminent interest rate cut.

Although many experts project a possible 50 bps rate cut during the next FOMC meeting, the analyst believes the government could cut the rate by 25 bps to begin with. Meanwhile, he identified another reason why the crypto market is pumping in 2025. According to the analyst, the Market Structure Bill, also known as the Clarity Act, is changing the narrative for crypto operators.

Clarity Act Boosts Confidence for Crypto IPOs and RWA Growth

The Clarity Act, dubbed a “Market Structure Bill” in some commentary, is credited with renewing interest in crypto firms going public and increasing institutional uptake. Meanwhile, demand for real-world assets tokenized on blockchain has reached new highs, with ETH supporting many RWA protocols.

In the meantime, the analyst highlighted the bullish potential of other top crypto, including Ethereum, which is gaining support from Wall Street and public treasury companies, leading to real-world assets on the blockchain protocol hitting a new all-time high of $8.36 billion. 

Related: Capitol Hill Set for Major Crypto Policy Week with CLARITY Act in Focus

The analyst projected that Ethereum could reach a remarkable $15,000 price target by the end of 2025, while other top cryptos, including Solana and Chainlink, will experience increased demand and surge to record levels.