Altcoins experienced a significant surge in value on Tuesday afternoon following Treasury Secretary Scott Bessent’s suggestion that the Federal Reserve should consider implementing a 50 basis point rate cut at their upcoming September meeting.
Bessent’s remarks on Fox News sparked speculation and excitement in the market as he emphasized the potential impact of a larger rate cut. While a 25 basis point cut had already been anticipated by markets, the idea of a 50 basis point cut further fueled the rally in altcoins.
It is important to note that Bessent, as Treasury Secretary, does not hold a position within the Federal Reserve. However, his role in selecting a replacement for Fed Chair Powell gives weight to his words in the financial sphere.
Among the cryptocurrencies that saw notable increases, ether led the charge with a nearly 9% surge in the past 24 hours, reaching a price above $4,600 for the first time since November 2021. Cardano (ADA), Solana (SOL), and Litecoin (LTC) also experienced gains of around 8%, while XRP (XRP) saw a 3.5% increase.
Interestingly, Bitcoin (BTC) did not participate in the rally, maintaining a relatively stable price around $120,000. Despite this, equity markets enjoyed a boost of over 1% alongside the surge in altcoins, and the dollar weakened against major currencies.
The rally was initially triggered by new data revealing that consumer prices in July aligned closely with estimates, setting a positive tone for the market outlook.
