Fed Emergency Rate Cut Could Boost Bitcoin, Cardano, and XRP Prices?

Jakarta, Pintu News – The possibility of an emergency interest rate cut by the Federal Reserve has risen sharply in prediction markets such as Polymarket and Kalshi, along with the escalation of the trade war triggered by Donald Trump’s policies.

On Polymarket, a poll of over $360,000 in assets showed this probability jump to 31%, up from 15% on April 1. Meanwhile, Kalshi recorded a 41% chance, the highest figure since November last year.

The rise comes amid downgrades to economic projections by some analysts due to the expansion of the trade war.

Check out the full analysis here!

Impact of Rising Tariffs and Recession

Recently, the United States imposed a 104% tariff on all goods from China, a major move that is likely to have a significant impact on both economies.

China exports approximately $432 billion worth of goods to the US each year, out of a total trade volume of $582 billion between the two countries. In addition, the US has also imposed broad tariffs on several other major trading partners, including the European Union, Japan, South Korea and Vietnam.

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Market Reaction and Wall Street Predictions

Major Wall Street firms such as JPMorgan, BlackRock, and Goldman Sachs have increased their recession predictions for this year. In response, an emergency interest rate cut by the Federal Reserve is seen as increasingly likely to ease borrowing costs and inject liquidity into the economy.

History shows that risky assets like stocks and cryptocurrencies tend to perform well when the Fed carries out emergency rate cuts. An example occurred in March 2020, when the fear and greed index fell into the extreme fear zone as the pandemic began.

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Outlook for Bitcoin, Cardano, and XRP

Bitcoin (BTC), Cardano (ADA), and Ripple (XRP) have entered a bear market this year, following a broader decline in equities. The Dow Jones, S&P 500, and Nasdaq 100 indices have all fallen more than 20% from their 2024 peaks, officially entering bear territory.

In March 2020, a series of interest rate cuts, quantitative easing and fiscal stimulus helped boost crypto and stock prices. Bitcoin jumped from under $4,000 in March 2020 to over $69,000 a year later.

Similarly, the price of XRP jumped from $0.12 to almost $2, while Cardano’s meteoric rise pushed it to $3 and market capitalization to $91 billion.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Crypto News. Key Fed Forecast Could Boost Bitcoin, Cardano, XRP, and Other Altcoins. Accessed on April 10, 2025
• Featured Image: Generated by AI