Ethereum named another winner
Merkle Capital says Bitcoin and other cryptocurrencies should benefit from the global trend of lower interest rates.
Cryptocurrency investment advisory firm Merkle Capital predicts that the global trend of lower interest rates will lead to a rise in Bitcoin prices and an increase in investment in cryptocurrencies this month.
Woramet Chansen, an investment advisor at Merkle Capital, said Bitcoin prices rose more than 25% in September after the US Federal Reserve cut interest rates by 0.50 percentage points for the first time in four years. .
“This is an important turning point in the market cycle, encouraging investors to take more risks and creating long-term digital asset investment opportunities,” he said.
“Bitcoin’s price has reached an all-time high, but other cryptocurrencies have not been able to reach similar highs.”
In Wolamet’s view, given the Fed’s dot plot for September, Bitcoin and other cryptocurrencies, especially Ethereum, are likely to grow significantly this month.
The dotplot suggests a total rate cut of 2.5 percentage points by the end of 2026, including last month’s cut. As a result, the target range for the federal funds rate will be lowered to 2.75% to 3.00% in 2026.
“This shows a good opportunity for risk assets based on fundamentals and statistics,” he said.
Meanwhile, stablecoin supply is at its highest level in two years, demonstrating the value of cash in the crypto market.
“The record-high supply of stablecoins is an important example of growing investor confidence,” Wolamet said.
According to the investment firm, the market capitalization of altcoins, excluding Bitcoin and Ethereum, has increased by more than 25% in the past six months, passing an important test level. He said this shows investors’ confidence in the crypto market, especially the Ethereum ecosystem, which has led the rise in other currencies.
Mana Kanijou, chief commercial officer at Merkle Capital, said a risk factor was the escalation of geopolitical conflicts.
“This could lead to panic selling in various assets and reverse the current direction of the economic recovery,” Mana said.
However, he said the short-to-medium term outlook is positive for crypto investments.
Sukit Udomshirikul, managing director and head of research at InnovestX Securities, said that after the halving, Bitcoin price will be in the range of $50,000 to $55,000.
He said this is a reasonable price based on supply and demand data. However, a weaker dollar and lower interest rates are supporting the price of Bitcoin.
Kitt said one factor to watch is the U.S. presidential election in early November.
“If Donald Trump wins, we need to monitor policies that promote cryptocurrencies,” he said.
Bitcoin and Ethereum are considered alternative assets for investment as investors purchase them through spot exchange-traded funds, Skitt said.
