- CloudAICrypto
- Posts
- Why Rate Cuts Make Altcoins Explode
Why Rate Cuts Make Altcoins Explode
PLUS: Ethereum Still A Bargain & UAE Surpasses El Salvador in BTC Holdings
Ethereum Still A Bargain
Why Rate Cuts Make Altcoins Explode
UAE Surpasses El Salvador in BTC Holdings
Demand for Bitcoin Cools
And more…
Market Data Prices as of 6:00am ET
This Update Is Brought To You By Bitbo
We are excited to announce one of Bitbo’s newest trading charts:
This chart shows the price of the S&P 500 index in bitcoin (BTC).
The Relative Strength Index (RSI) chart is a momentum based visualization for the Bitcoin market. We use the RSI to measure the speed as well as the magnitude of directional price movements in Bitcoin. Depending on how fast a price changes and by how much, an RSI score is given to the day being observed relative to the past 14 days.
A high RSI means that price movements are very positive relative to the past 14 days.
A low RSI means that price movements are very negative relative to the past 14 days.
ETHEREUM STILL A BARGAIN🚀
Ethereum (ETH) has just notched a new all-time high at $4,953, but if you think the rally is over, think again.
According to Standard Chartered Bank, ETH and a wave of Ethereum treasury companies are still “cheap at current levels.”
🚀 Price Targets:
$7,500 by year-end
$25,000 by 2028
Geoffrey Kendrick, the bank’s head of digital assets, says ETH ETFs and corporate treasuries are driving an unprecedented accumulation trend.
Since June, funds and firms have absorbed 4.9% of Ethereum’s circulating supply. Treasury companies alone have taken 2.6%, while ETFs added 2.3%.
For perspective, during the early Bitcoin ETF boom, only 2% of BTC supply was locked up.
Kendrick expects ETH treasuries could eventually own 10% of all Ethereum, with BitMine Immersion aiming for 5% by itself.
📈 Flow Momentum:
This Monday, ETH funds saw $444M inflows, more than double Bitcoin’s $219M.
ETH is up 32.6% YTD, beating BTC’s 17.3%.
Even ETH-linked stocks like SharpLink Gaming (SBET) and BitMine Immersion are still trading at discount valuations, despite staking yields of 3% plus price gains.
Kendrick says the recent dip to $4,400 was a “great entry point.”
The takeaway? Ethereum’s supply is vanishing into ETFs and treasuries at historic speed, while staking, buybacks, and regulatory clarity fuel the bull case.
The upside, Standard Chartered argues, has only just begun. 🌐🔥
We are excited to introduce the Bybit Card to you!
⭐ Get 10 EUR card bonus upon sign
⭐ Refer a friend and grab up to 30 USDT
⭐ Get 2% Auto-Cashback in USDT
There is no annual or monthly fees, you get instant virtual card, up to 8% APY and it's compatible with Google Pay!
Order a Bybit Card in just 5 minutes!
1️⃣ Sign up for a Bybit Account here
2️⃣ Complete your application
3️⃣ Receive your virtual card immediately
You get to earn rewards point as you spend too!
Rewards Point can be converted to USDT or redeemed exclusive merchandise
WHY RATE CUTS MAKE ALTCOINS EXPLODE
A buddy of mine asked the other day:
“Why are you so damn excited about some boring Fed announcement?”
Here’s the deal: rate cuts change everything.
When the Federal Reserve lowers rates, credit gets cheaper. Loans, mortgages, business debt — all cost less.
Suddenly, there’s more cash sloshing around the system.
And where does some of that excess money flow? Right into crypto.
But here’s the kicker: It doesn’t flow evenly.
Bitcoin and Ethereum are already massive. They need billions just to move a couple of percent.
Altcoins? They can skyrocket with the same cash inflows.
History proves it:
After a 0.75% 2019 rate cut, TOTAL3 (crypto market cap ex-BTC/ETH) gained +57.39%.
Total Crypto Market Cap Exluding Bitcoin and Ethereum:
After 2020’s 1.5% rate cut, it ripped +720.53%.
Total Crypto Market Cap Exluding Bitcoin and Ethereum:
And in 2024 after a 1.75% rate cut, we were up +109.43%.
Total Crypto Market Cap Exluding Bitcoin and Ethereum:
Average? Nearly +300% over 12 months.
Rate cuts don’t just help stocks. They can trigger altcoin seasons — and the next one could be starting very soon.
Bitcoin Well is at the forefront of the financial revolution, bridging the gap between traditional banking convenience and the transformative power of Bitcoin.
Their mission? To enable independence through automatic self-custody solutions.
What We Offer:
200+ Bitcoin ATMs across Canada
Online Portal for buying, selling, and using Bitcoin (available in Canada and USA)
Bill pay services
Lightning Network support
Gift card options
Cash vouchers
🇦🇪UAE SURPASSES EL SALVADOR
Arkham Intelligence has revealed that the United Arab Emirates (UAE) holds approximately $700 million in bitcoin, making it one of the world’s top state-level holders of the asset.
BREAKING: THE UNITED ARAB EMIRATES IS NOW ON ARKHAM
The UAE’s $700M BTC holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by Citadel, a public mining company majority owned by UAE Royal Group through IHC.
Arkham is the first to
— Arkham (@arkham)
3:34 PM • Aug 25, 2025
The UAE’s 6,300 BTC were not obtained through confiscation but through mining, primarily conducted by Citadel Mining, a firm connected to International Holding Company (IHC) and ultimately linked to the UAE Royal Group under Sheikh Tahnoon bin Zayed Al Nahyan.
Across its lifetime, Citadel Mining has produced about 9,300 BTC, cementing the UAE’s position in the global bitcoin rankings.
Collectively, governments around the world control roughly 517,000 BTC—valued at more than $56 billion—representing 2.4% of total supply.
MindLabPro: The world's most advanced nootropic formula.
Designed to boost your everyday brainpower. For enhanced cognitive function and peak daily performance.
11 premium-grade research-backed nootropic nutrients.
100% plant-based & stim-free. In prebiotic vegan capsules.
For focus, clarity, memory, mood, motivation & more.
BITCOIN DEMAND COOLS
Bitcoin’s momentum has slowed after forming a $124.4K high last week, with the asset retracing to $112.9K—a -9.2% pullback.
This decline coincides with weaker capital inflows, as investors appear reluctant to commit fresh funds at elevated price levels.
Compared with prior ATH breakouts, the growth in realized cap has been significantly smaller.
During the March and December 2024 ATHs, realized cap increased by around +13% per month, while the current cycle has peaked at just +6%/month.
This slowdown signals a softer phase of capital inflow and highlights a reduced investor appetite at these valuations.
OTHER NEWS
🎯 BIS Calls to Flag ‘Illicit Bitcoin’ in Financial System 🎯
🚓 US States Target Bitcoin ATMs After Fraud Cases Rise 🏧
🛑 Federal Reserve Ends Secretive Crypto Oversight Unit 🏛️
⚡ Bitcoin Tipping Rolls Out on 𝕏 via BitBit Partnership 💸
🏈 Ex-NFL Star Bo Hines Joins Tether as Strategic Advisor 🏟️
🐉 China’s CMB Bank Debuts New Crypto Exchange in Hong Kong 🇭🇰
📉 Strategy Eases Bitcoin Purchase Limits as Premium Falls 📊
🤡 Harvard Economist Still Bitter Over Missing Bitcoin’s Boom 🎓
⚡ SoFi Integrates Bitcoin Lightning for Global Transfers 🌍
🔄 Bitcoin’s Legendary 4-Year Halving Cycle Persists ⏳
💴 China Moves Toward Yuan-Pegged Stablecoin to Rival USD 🪙
💰 Winklevoss Twins Donate $21M in Bitcoin to Democrats 🏹
🤫 Eric Trump Says Nation Secretly Amassed 200K Bitcoin 🕵️
🇵🇭 Philippines Floats Bitcoin Reserve for National Security 🛡️
🇩🇪 Allianz Reverses Stance: Calls Bitcoin a True Store of Value 🏦
RECOMMENDATIONS
|
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
Reply