Fed to Cut Interest Rates Amid Record Stock Valuations in 2025

The United States Federal Reserve is set to cut interest rates in 2025, a move coinciding with the S&P 500 reaching all-time highs. This unusual scenario could signal a new crypto bull run.

Stock valuations are at record highs, surpassing historical peaks like the 1929 pre-Depression and dot-com bubble levels.
The S&P 500’s price-to-book ratio reached a record 5.3x in August 2025.
Despite high valuations, a rate cut of at least 25 basis points is expected due to labor market weaknesses.
Historically, rate cuts when stocks are near all-time highs lead to gains in equities and potentially boost cryptocurrencies.

Cutting rates amidst high inflation can enhance liquidity, benefiting risk assets like Bitcoin and Ethereum. Gold and Bitcoin have already seen substantial gains since 2023, rising by 450% and 105%, respectively.

Altcoins, particularly those linked to AI, could see significant growth.
If the Fed slows its rate-cutting pace, it might cause short-term declines in both equities and cryptocurrencies.

Altcoin