Crypto prices have rallied following the Federal Reserve slashing its key lending rate by 50 basis points on Wednesday.
The industry’s total market cap is up 3% today, and market leader Bitcoin has broken its $62K resistance. Will this move continue?
Fed Unshackles the Market, Bitcoin’s Rock-Solid Fundamentals Shine Through
It was a coin toss whether the market would react positively to a 50-point cut due to a potential inadvertent message it may send about a shaky economy.
However, the positive price action shows that traders are confident in a healthy economy, and this is helped by expectations of more rate cuts through 2025.
Moreover, the 50 basis point cut makes borrowing money cheaper, which will boost liquidity in risk-on-asset markets like crypto, providing a tailwind for growth.
Indeed, this is bullish for Bitcoin – but it’s not the only consideration. Another is the four-year halving cycle.
Every four years, the amount of Bitcoin rewarded to miners per block is slashed in half, which reduces the amount of new BTC entering the market.
Approximately six months after the halving, a ‘supply shock’ is felt, in which miner reserves are depleted, and a discrepancy between supply and demand causes the BTC price to surge.
The last halving was in March 2024, which was six months ago.
Adding to the excitement is Bitcoin ETFs. This will be the first time institutional capital has had such seamless direct exposure to Bitcoin during a bull rally.
All of this converges into a fundamentally robust outlook for the market-leading cryptocurrency.
But what do the charts say?
At press time, analyst MacroCGR published a Bitcoin chart pattern showing BTC breaking out of a pennant to the upside. This could indicate a shifting momentum and potentially enable its next leg up, taking out its previous ATH.
Regarding price target, Bluntz looks toward $85K, followed by a brief consolidation and a second leg to $100K by the end of 2024.
In Q1 of 2024, Bitcoin surged from $42K to $73K, marking a 73% rally in three months.
However, that happened at a time when interest rates were high and prior to the halving and ETF approvals.
Bluntz anticipates a 61% rally from its current price, which seems more than reasonable given the above factors.
Best Cryptos to Buy for the Next Bull Rally
Should Bitcoin perform as expected, it will also set the pace for altcoins. Let’s look at three of the best coins to buy for the anticipated bull run.
Toncoin
Toncoin is a layer 1 blockchain with huge adoption. Multiple apps on its network boast tens or hundreds of millions of users.
This is because Toncoin is a Telegram-native blockchain. Telegram’s 900 million users can seamlessly use Toncoin without much fuss.
Toncoin’s leading project by adoption is Hamster Kombat, with over 200 million users. Others like Notcoin and Dogs have garnered tens of millions.
In fact, Dogs is now the most adopted meme coin, with 17 million users claiming its recent airdrop.
These projects have created a blueprint formula for mass adoption: launch on Toncoin and run an airdrop.
Now, teams that want a widely used project will be pressed to do the same.
This could create a network effect, leading to further ecosystem development, more robust infrastructure, and a higher TON price.
In an industry rife with speculation, Toncoin has already proven itself by garnering mass adoption.
Crypto All-Stars
On the other end of the spectrum, Crypto All-Stars is an upcoming project with all its upside ahead of it.
The project is building the first unified staking protocol for meme coins, allowing users to stake any top meme coin and generate $STARS rewards.
However, users must hold $STARS to access the platform; the more they hold, the more they’ll earn.
They can also stake their $STARS tokens to extend their rewards. Currently, $STARS staking provides a 1,000% APY, but this will decrease over time.
In Q1 2024, the meme coin sector provided the biggest returns by far. Should we see history repeat, Crypto All-Stars is in a favorable position to capture a lot of liquidity.
Crypto All-Stars is undergoing a presale and has raised $1.4 million so far.
Today, investors can buy $STARS for $0.0014535, but this price will rise in two days.
Ethereum
Ethereum has been an underperformer in recent months, losing ground against Bitcoin and some altcoins like Solana.
However, this might all be about to change. For the first time, institutional capital can flow directly into ETH during a bull market via its new ETFs.
The Ethereum ETFs have seen low volume lately, but inflows will likely ramp up as the bull market prevails.
Another reason ETH might explode is that it has finally figured out how to handle its previously exorbitant gas fees through the use of layer 2 blockchains.
There remains an active discussion on how this affects the Ethereum value, but we must not discount the fact that high gas fees have been Ethereum’s biggest concern for a long time.
Lower fees will drive more adoption, which in turn will drive more demand for ETH.
Also, ETH has reacted more positively than Bitcoin from the recent rate cut decision, pumping 5% in the past 24 hours.