Tide Capital Sees Bullish Momentum for BTC and Altcoins Amid Fed’s Rate Cuts

• The
  Federal
  Reserve
  has
  made
  a
  decisive
  move
  by
  cutting
  interest
  rates
  by
  50
  basis
  points,
  officially
  ending
  a
  long
  period
  of
  monetary
  tightening.
• This
  shift
  opens
  the
  door
  to
  a
  new
  growth
  phase
  for
  crypto,
  as
  market
  conditions
  become
  more
  favorable
  for
  risk
  assets,
  according
  to
  Tide
  Capital,
  a
  digital
  asset
  investment
  and
  trading
  firm.

The
End
of
Tightening:
A
Turning
Point
for
Crypto

The
50bps
rate
cut
marks
a
critical
point
for
markets,
signaling
the
end
of
the
Fed’s
restrictive
policy
that
began
in
early
2022.
Tide
Capital
interprets
this
as
a
clear
opportunity
for
investors
to
capitalize
on
the
renewed
optimism
surrounding
risk
assets.
The
firm
notes
that
the
rate
cut
has
bolstered
market
confidence,
leading
to
notable
gains
in
traditional
markets
like
U.S.
equities
and
gold,
as
well
as
a
strong
rally
in
cryptocurrencies.

 

After
several
months
of
consolidation
between
$50,000
and
$70,000,
Bitcoin
is
likely
poised
to
break
out,
according
to
Tide
Capital’s
analysis.
While
some
short-term
volatility
may
arise
due
to
factors
like
the
upcoming
U.S.
elections,
the
overall
trend
points
toward
a
sustained
upward
move.
Tide
Capital
expects
that
any
potential
pullbacks
in
BTC
price
will
be
minimal,
given
the
favorable
macroeconomic
conditions
created
by
the
Fed’s
policy
shift.

Stablecoins
Surge,
Capital
Flows
Back
into
Crypto

Tide
Capital
points
to
the
increasing
supply
of
stablecoins
as
a
key
indicator
of
renewed
interest
in
the
crypto
market.
Since
the
beginning
of
September,
stablecoin
supplies
have
risen
by
$3
billion,
indicating
that
capital
is
once
again
flowing
into
digital
assets.
Compared
to
the
previous
year,
stablecoin
supply
has
surged
by
$50
billion,
nearing
historic
highs.

 

During
the
Fed’s
tightening
cycle,
higher
short-term
interest
rates
led
to
capital
outflows
from
the
crypto
space,
as
investors
sought
safer
returns.
Now,
with
rates
on
the
decline,
investors
are
finding
the
reduced
opportunity
cost
more
attractive,
leading
to
greater
inflows
into
cryptocurrencies.
Tide
Capital
sees
this
trend
as
a
clear
signal
of
growing
confidence
in
the
digital
asset
market,
positioning
the
sector
for
further
gains.

 

Altcoins
and
Meme
Coins
Beginning
to
Outperform

While
Bitcoin
remains
at
the
center
of
the
market’s
attention,
Tide
Capital
notes
that
altcoins
are
beginning
to
outshine
BTC
in
terms
of
performance.
Since
the
Fed’s
rate
cut,
altcoin
dominance
has
increased,
with
many
showing
stronger
growth
than
Bitcoin
itself.
The
growing
appetite
for
risk
in
the
crypto
market
has
prompted
many
investors
to
explore
high-potential
altcoins.

Meme
coins,
in
particular,
have
gained
significant
traction.
Tide
Capital
points
to
the
remarkable
rise
of
Neiro,
a
meme
coin
that
surged
by
30x
after
being
listed
on
Binance
in
mid-September.
This
surge
reflects
a
broader
trend
where
meme
coins
are
driving
market
sentiment
and
generating
substantial
returns
for
investors.

 

As
meme
coins
continue
to
captivate
market
participants,
Tide
Capital
suggests
they
may
offer
compelling
investment
opportunities
due
to
their
low
valuation
and
high
potential
for
explosive
growth,
especially
when
compared
to
more
established
digital
assets.

 

DeFi’s
Second
Spring:
Aave
Leads
the
Charge

The
transition
to
a
rate-cutting
environment
is
also
expected
to
revive
interest
in
DeFi
(decentralized
finance),
with
older
protocols
like
Aave
standing
to
benefit.
Tide
Capital
suggests
that
as
borrowing
costs
decline,
investors
will
increasingly
seek
yield
opportunities
in
DeFi,
particularly
through
stablecoin
staking
and
other
high-return
mechanisms.

 

Aave,
which
has
maintained
a
strong
security
record
and
solid
performance
since
its
launch
in
2020,
is
positioned
to
lead
this
resurgence.
With
its
TVL
(total
value
locked)
reaching
$12.5
billion,
Aave
remains
the
top
lending
protocol
across
multiple
chains.
Tide
Capital
highlights
Aave’s
impressive
organic
growth,
noting
that
its
monthly
active
user
count
recently
hit
a
record
high,
and
its
revenue
continues
to
exceed
expectations
despite
broader
market
challenges.

 

Sui:
The
New
Star
Among
Public
Blockchains

Tide
Capital
also
draws
attention
to
the
impressive
growth
of
Sui,
a
next-generation
public
blockchain
that
has
outperformed
its
peers
in
recent
months.
Sui’s
token,
$SUI,
has
surged
over
200%
from
its
August
lows,
nearing
its
all-time
high
set
in
March.

 

Institutional
interest
in
Sui
is
growing
rapidly.
In
September,
Grayscale
launched
a
Sui
trust
fund,
and
Circle
announced
plans
to
introduce
native
USDC
on
the
Sui
network,
further
bolstering
the
ecosystem.
According
to
Tide
Capital,
these
developments
have
attracted
significant
capital
to
Sui,
with
its
TVL
skyrocketing
from
$25
million
to
$960
million
in
just
one
year.

 

“Sui’s
growth
trajectory
is
unmatched
in
the
current
market,
and
its
potential
is
still
largely
untapped,”
Tide
Capital
states. “With
its
fully
diluted
valuation
(FDV)
sitting
at
$16
billion,
Sui
offers
considerable
upside
compared
to
more
established
blockchains
like
Solana,
whose
FDV
is
nearing
$90
billion.”