Fed Policy and Politics Drive Crypto Market Rally

Financial markets are eyeing the Federal Reserve's upcoming interest rate decision amid speculation over potential rate cuts and renewed quantitative easing, driven in part by former President Donald Trump’s predictions of imminent easing. Reports of significant Treasury bond purchases by the Fed, dubbed 'stealth QE,' have increased optimism and risk appetite in both crypto and stock markets. This optimism has contributed to rising prices and trading volumes in Bitcoin and Ethereum as investors anticipate greater liquidity. The Fed's lack of a Central Bank Digital Currency (CBDC) platform is also turning institutional and retail attention toward stablecoins on existing blockchains. Ongoing macroeconomic uncertainty and political signals are expected to further influence digital asset valuations. Market participants are closely watching both central bank policy and political commentary for guidance on future moves.