Crypto Market Turns Bullish as Fed Eyes 50 bps Rate Cut, Standard Chartered Fuels Rally

The cryptocurrency market is heating up, driven by growing expectations that the U.S. Federal Reserve (Fed) will announce a major rate cut next week. According to Standard Chartered, the Fed could slash rates by 50 basis points, double the previously expected move. This forecast has sparked fresh bullish momentum across Bitcoin and altcoins.

Why Fed Decisions Matter for Crypto When the Fed eases monetary policy, borrowing becomes cheaper and investors are more willing to take risks. That often triggers a shift away from bonds into higher-return opportunities — and Bitcoin is one of the first destinations. Risk assets like BTC, Ethereum, and major altcoins are already responding. Bitcoin was trading near $111,000 at the time of writing, with analysts warning that a decisive Fed move could fuel another wave of growth across the crypto market.

Standard Chartered Ups Its Forecast The bank originally predicted a modest 25 bps cut, but fresh U.S. labor market data forced a rethink. Unemployment has climbed to 4.3%, the highest level in nearly four years. Standard Chartered now argues the Fed must act boldly: “The labor market shifted from solid to soft in less than six weeks. The Fed cannot wait.”

Market Odds: 25 bps Still Dominant, But 50 Is on the Table The CME FedWatch Tool still shows a 90% probability of a 25 bps cut. However, the odds of a full 50 bps move have risen to 10%, igniting optimism among crypto investors. If the Fed delivers, the target rate range would fall from 4.25–4.50% to 4.00–4.25% — a strong catalyst for digital assets.

Altcoins Could Shine Next While Bitcoin typically leads the charge, altcoins could benefit even more. Rising expectations for rate cuts have already triggered volatility in Ethereum, Solana, and XRP. Analysts speculate that a 50 bps move could spark a “mini altseason,” with smaller tokens outperforming BTC in the short term. If September’s cut marks the start of a series of reductions, the crypto sector could enjoy sustained support just as traders have been craving renewed momentum.

Fed Voices Growing Louder Inside the Fed, officials are signaling readiness. Governor Chris Waller told CNBC the central bank should “start cutting rates at the next meeting.” Meanwhile, Governor Michelle Bowman urged swift action to prevent further labor market weakness. Such comments suggest a growing internal consensus — and crypto markets are taking it as a green light for more gains.

What Comes Next The next critical test will be CPI and PPI inflation data, due September 10–11. If they confirm weakening price pressures, the Fed will have even stronger grounds for a bold 50 bps move. For crypto investors, the stakes couldn’t be higher. Next week’s Fed decision could shape not only the price of Bitcoin but also trigger a broader surge in altcoins.

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