The crypto market has hit a rough patch, sliding to $2.65 trillion after a 1.02% dip in the last 24 hours. Bitcoin, Ethereum, and XRP had their moment earlier this week, rallying before tumbling as global markets reacted to U.S. tariff news. It’s been a wild ride for traders, but with interest rate cuts on the horizon next year, there’s still hope for a rebound. Meanwhile, Bitcoin’s dominance sits at 62.01% and could climb even higher as the market finds its footing.
Why Are Rate Cuts Important for Crypto?
The Federal Reserve is expected to lower interest rates four times in 2025, with small 0.25% cuts planned in June, July, September, and December. Lower interest rates make borrowing cheaper, which often pushes more money into riskier assets like crypto. Historically, Bitcoin has performed well when rates drop, as a weaker U.S. dollar makes it more attractive as a hedge against inflation.
Big Money Moves: What Are Investors Doing?
Ahead of recent economic developments, large crypto holders moved significant amounts of Bitcoin, Ethereum, and XRP onto exchanges. When investors send assets to exchanges, it usually signals they’re preparing to sell. Data shows that Bitcoin saw a sudden spike in transactions, with 2,500 BTC moved in a single block after Donald Trump’s tariff speech. Meanwhile, Ethereum deposits jumped to 80,000 ETH in an hour, and XRP transfers to Binance skyrocketed to 130 million—way up from the usual 10 million per hour.
This flood of sell orders came at a time of economic uncertainty, as traders decided to take profits and reduce their risk. However, the big question is whether the selling pressure is over or if another move is coming.
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Will Crypto Prices Bounce Back?
Now, attention is turning to the U.S. non-farm payroll report, which will provide fresh data on the job market. If the report shows signs of economic slowdown, the Fed could be pressured to cut rates even sooner. A weaker economy usually leads to more accommodative policies, which benefit Bitcoin and other cryptos.
So far, things are looking more stable. By Friday morning, Bitcoin held above $83,100, Ethereum climbed back over $1,800, and XRP, Solana, and Cardano posted modest gains of around 2%. With selling pressure easing and markets adjusting to the idea of rate cuts, some analysts believe a short-term bounce is likely. If economic data supports the case for easier monetary policy, crypto could be in for a recovery sooner rather than later.
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