Prepare for Alt Season as Investors Anticipate Federal Reserve Rate Cuts: Crypto Daybook Americas

Following the release of the US CPI report, market sentiment remains optimistic, with investors expecting the Federal Reserve to implement three interest rate cuts this year, commencing as early as next week. Cryptocurrency experts predict that bitcoin will reach new heights. Notably, it has been less than a month since it achieved a record value of around $124,500. However, the primary focus is on alternative cryptocurrencies such as XRP and SOL, which are expected to outperform leading cryptocurrencies like bitcoin and ether. According to Ryan Lee, chief analyst at Bitget, 'The bull market still has significant momentum, driven by robust public asset reserves and expectations of Federal Reserve rate cuts, which provide a favorable macroeconomic backdrop. Institutional investments and increasing regulatory clarity continue to fuel growth.' Lee also noted that the potential approval of XRP and SOL spot ETFs could be a substantial catalyst, unlocking billions in new demand and reinforcing confidence in digital assets as a mainstream investment class. Other experts, including Le Shi, managing director at market-making firm Auros, have highlighted BNB and HYPE as tokens of interest after they reached all-time highs. 'Beyond that, the broader narrative surrounding digital asset treasuries continues to attract capital and conviction, with SOL, HYPE, and CRO being key tokens to track,' Shi stated. Observers have also identified DeFi protocol Ethena's ENA as a standout coin as the Federal Reserve implements rate cuts in the coming months. In terms of institutional demand, Polygon Labs, the team behind the Polygon ecosystem, is collaborating with Cypher Capital, a digital assets investment firm, to expand institutional access to its native token, POL. 'We are seeing sustained demand from institutional investors for yield-generating digital assets backed by real network activity,' Aishwary Gupta, global head of payments, exchanges, and real-world assets at Polygon Labs, said in a statement. Other key news includes the yield on the US 10-year Treasury note, which is expected to drop below 4%, a bullish development for markets. The founders of the crypto newsletter service LondonCryptoClub stated, 'We target 3.80%. This is quite a reversal in the narrative of recent weeks and is another positive development for bitcoin and risk generally.' Meanwhile, blockchain analyst Lookonchain noted continued whale buying in HYPE, which has already gained over 5% in seven days to reach a record value above $56. In traditional markets, the dollar index is hovering within recent ranges despite the growing likelihood of faster Federal Reserve rate cuts. Is the expected easing already factored in? Remain vigilant. Key areas to watch include token events, conferences, token discussions, derivatives positioning, market movements, bitcoin statistics, technical analysis, crypto equities, crypto treasury companies, ETF flows, spot BTC ETFs, and spot ETH ETFs.