Betting on a rate cut by the Fed and clarity in policy is driving capital flow into altcoins.

A cryptocurrency analyst, known for his podcasts, explained what he believes is behind the impressive growth observed in the digital asset ecosystem in 2025. The analyst shared his observations after the altcoin market reached a record valuation of $1.72 trillion early Saturday morning.

The excitement surrounding the rate cut has reached new highs: analysts point to a 92% probability of a US Federal Reserve meeting in September.

Why will the USA lower interest rates
According to the analyst, the widespread expectations that the U.S. Federal Reserve will soon lower interest rates are one of the main reasons for the increase in demand for risky cryptocurrencies.

The analyst noted the statements of several experts in the financial industry who explained why a reduction in the interest rate to 50 basis points (bp.) could be the ideal option for the US economy.

Among such important events is the rise in the unemployment rate, which according to the latest report from the US government reached 4.3%, and a sharp increase in the number of initial claims for unemployment benefits, which reached a significant, atypical for the season, 263,000. The government also reported a ratio of job openings to available workers <1, which prompted investors and economic observers to expect a soon decrease in interest rates.

Although many experts predict a possible rate cut of 50 basis points at the next FOMC meeting, the analyst believes that the government may first lower the rate by 25 basis points. In addition, he named another reason for the growth of the cryptocurrency market in 2025. According to the analyst, the Market Structure Act, also known as the Clarity Act, is changing the situation for cryptocurrency operators.

The clarity law strengthens trust in cryptocurrency IPOs and the growth of risk-based assets (RWA)
The Clarity Act, which is referred to in some comments as the "Market Structure Bill," is seen as the reason for the renewed interest in the listing of cryptocurrency companies on exchanges and the increase in institutional participation. Meanwhile, the demand for real assets tokenized on the blockchain has reached new highs as ETH supports numerous RWA protocols.

Meanwhile, the analyst emphasized the optimistic potential of other leading cryptocurrencies, including Ethereum, which is receiving support from Wall Street and government treasury companies, resulting in real assets on the blockchain protocol reaching a new all-time high of $8.36 billion.

: The Capitol Hill is preparing for an important week of cryptocurrency policy with a focus on the CLARITY Act

An analyst predicts that by the end of 2025, Ethereum could reach an impressive price point of $15,000, while other leading cryptocurrencies, including Solana and Chainlink, will experience increased demand and soar to record levels.