Ether, Cardano, XRP and Other Cryptocurrencies Surge Higher as Scott Bessent Supports 50…

Several altcoins experienced a surge in value late in the U.S. afternoon on Tuesday, following remarks made by Treasury Secretary Scott Bessent, who suggested that the Federal Reserve should contemplate a 50 basis point reduction at its upcoming September meeting. Bessent discussed this possibility during an interview with Fox News, stating that a rate cut of this magnitude should be seriously considered. He also implied that the Fed missed the opportunity to lower rates in June due to inaccurate data, which he referred to as a significant issue within the central bank.

While the markets had almost entirely factored in a 25 basis point adjustment in September, the proposal of a 50 basis point cut seemed to elicit even more enthusiasm. It is important to note that Bessent holds the position of Treasury Secretary, not an official role within the Federal Reserve, and certainly not its chairman. However, his influence is not to be underestimated, as President Trump has assigned him the responsibility of selecting a replacement for Fed Chair Powell. With Bessent’s significant role in the administration, his statements carry weight within financial circles.

Ether, one of the leading cryptocurrencies, saw a notable increase, rising by approximately 9% within the previous 24 hours and surpassing the $4,600 mark for the first time since November 2021. Similar positive movements were observed in other altcoins such as cardano (ADA), solana (SOL), and litecoin (LTC), each showing an 8% growth in value over the same 24-hour period. XRP (XRP) also experienced a rise of 3.5%.

Interestingly, Bitcoin (BTC) did not actively participate in the day’s rally, as investors in this particular cryptocurrency largely remained on the sidelines. Nevertheless, the surge in altcoin value also had a positive impact on equity markets, driving a more than 1% increase. Meanwhile, Bitcoin’s trading price remained relatively stable at $120,000, with minimal fluctuation over the previous 24 hours. The U.S. dollar showed some weakness in comparison to major currencies following these developments.

The rally in cryptocurrency prices began early on Tuesday morning, coinciding with the release of consumer price data for July, which revealed an increase in line with expectations. The sentiment within the market seemed to be driven by a combination of factors, including Bessent’s rate cut proposal and the release of economic indicators. As cryptocurrencies continue to evolve and attract attention from mainstream financial players, these fluctuations in value will likely continue to shape market dynamics.