24/7 Cryptocurrency News

Fed Plans for Three Rate Cuts In 2024, Altcoin Market Rally Continues

Fed Rate Cuts: The Santa Claus rally in the altcoin market is likely to continue going ahead into 2024 with analysts calling for buying the dips.
Published by
Fed Plans for Three Rate Cuts In 2024, Altcoin Market Rally Continues

During Tuesday’s FOMC meeting, the U.S. Federal Reserve announced that it would be keeping its interest rate unchanged for the third consecutive time. This led into a sharp surge in the broader cryptocurrency market with Bitcoin (BTC) price shooting by 4.5% and currently trading around $42,700 levels. The Altcoin market has also joined the party!

Altcoin Market Rally

After facing some selling pressure earlier this week, the altcoin market continues to rally amid the positive Fed commentary. The Ethereum (ETH) price is up by 3.75% trading at $2,250 level while others like Solana (SOL), Avalanche (AVAX) and Cardano (ADA) have registered even higher price rallies.

In the latest Federal Open Market Committee (FOMC) announcement, the Federal Reserve declared a decision to maintain current interest rates. The unexpected rapid decline in inflation throughout the year has led officials to revise their projections.

A consensus among most officials anticipates three rate cuts in 2024 as part of an effort to align inflation with the 2% target. Fed Governor Christopher Waller went so far as to suggest the theoretical possibility of initiating interest rate cuts in the spring, contingent on favorable inflation performance.

However, these three rate cuts are still fewer than the five envisioned by many analysts on Wall Street. The limited number of anticipated rate cuts in 2024, potentially commencing in the latter part of the year, implies that officials believe maintaining elevated borrowing rates will be necessary through most of the upcoming year to continue curbing spending and inflation.

The Santa Claus Rally or Buy On Dips Market?

Most analysts expect the crypto market to continue with the Santa Claus rally moving into Christmas and the new year 2024. Cryptocurrency analyst Michael van de Poppe shared his insights on the Federal Open Market Committee (FOMC), stating that it has concluded with a dovish stance and a probable indication of future rate cuts.

He noted a risk-off sentiment for Bitcoin before the FOMC event, followed by a rebound, expressing optimism for a continued upward trend. Van de Poppe outlined a target range of $47,000 to $50,000 for Bitcoin during this pre-spot ETF phase.

In the current market phase, it is advisable to consider buying the dips for both Altcoins and Bitcoin. The market is deemed significantly undervalued, and there’s a potential for Ethereum to gain momentum in the upcoming months, he added.

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor’s Strategy Fails To Make S&P 500 Listing, MSTR Stock Drops

Strategy, led by Executive Chairman Michael Saylor, has been left out of the latest S&P…

September 6, 2025
  • 24/7 Cryptocurrency News

Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq

SOL Strategies Inc. has received approval to be listed on the Nasdaq Global Select Market.…

September 6, 2025
  • 24/7 Cryptocurrency News

Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash

Ethereum (ETH) price fell sharply as Fidelity, Grayscale, and VanEck drove heavy ETF outflows, but…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight

SharpLink has reaffirmed its full compliance with Nasdaq rules, dismissing speculation about shareholder approval requirements.…

September 5, 2025
  • 24/7 Cryptocurrency News

Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com

A deal with Crypto.com has led to the establishment of a Cronos Treasury by the…

September 5, 2025