Expert Says ‘The Time Has Come’, What Could Drive The Next Explosive Altcoin Season
For the primary time in 2025, the United States Federal Reserve is preparing to cut rates of interest whereas the S&P 500 is buying and selling at all-time highs, and in response to The Kobeissi Letter, the time has come for an necessary shift in markets that might usher within the subsequent crypto market bull run.
As it stands, file inventory valuations, resilient GDP progress, sticky inflation, and cracks are forming within the labor market, leaving the stage open for volatility in conventional markets that might spill over into the next explosive altcoin season.
Fed Rate Cuts At Record Valuations
Expectations are additionally high that the Fed will preserve decreasing charges on the subsequent rate of interest resolution on Wednesday, September 17, 2025 and thru the tip of this yr. According to a lengthy thread that was posted on the social media platform X, this might have long-term bullish results on the crypto business.
The Federal Reserve often cuts charges within the face of financial weak spot and depressed fairness markets, however this time is completely different. As famous by The Kobeissi Letter, valuation metrics tracked by Bloomberg present US shares are costlier than ever, having surpassed even the 1929 pre-Depression peak and the dot-com bubble. Furthermore, the S&P 500’s price-to-book ratio hit 5.3x in late August, its file stage.
Despite these extremes, policymakers are anticipated to chop by a minimum of 25 foundation factors this week primarily based on weakness in the labor market. History reveals that when fee cuts occurred with shares inside 2% of all-time highs, as proven in 2019 and 2024, the S&P 500 delivered robust positive factors over the next yr. This uncommon combine may as soon as once more amplify capital flows into high-growth property, together with cryptocurrencies, within the final quarter of 2025.
A Perfect Time For Altcoins
Cutting charges into sizzling inflation provides liquidity gasoline simply as buyers chase danger property. That backdrop has all the time precipitated highly effective surges for Gold, Bitcoin, and other major cryptocurrencies, because the return of those property thrives when fiat returns come underneath query.
As The Kobeissi Letter framed it, the time has come. The Fed’s resolution to chop charges with shares at file highs, amid a 3% GDP progress and sizzling inflation 110 bps above the Fed’s long-term goal, may very well be the driving force of the following altcoin season. Gold and Bitcoin have already been priced on this new period of liquidity, as each at the moment are up by 450% and 105%, respectively, since 2023.
The setup is even higher for altcoins like Ethereum, XRP, Chainlink, and most particularly cryptocurrencies concerned within the rising AI area of interest. There may very well be extra immediate-term volatility, however long-term asset house owners will profit probably the most from the speed reduce.
However, if the Federal Reserve opts for a slower tempo of cuts than markets are at the moment pricing in, the disappointment could ripple by means of each equities and cryptocurrencies and trigger short-term declines this week.
