Crypto.com CEO Kris Marszalek is making a bold prediction: the Federal Reserve’s next interest rate cut could ignite a massive crypto rally in late 2025.
In an interview with Bloomberg, Marszalek argued that a September 17 rate cut would inject much-needed liquidity, reduce borrowing costs, and fuel demand for risk assets like Bitcoin, Ethereum, and altcoins.
“Every time the Fed eases, crypto markets feel the impact almost instantly,” Marszalek said. “We’ve seen this before, and I believe Q4 2025 will be no different.”
Why a Fed Rate Cut Matters for Crypto
Marszalek pointed to history to back his prediction. He noted that the Fed’s cuts in late 2024 triggered a 57% surge in digital asset markets in just four months.
“When money is cheaper and liquidity expands, risk assets benefit first,” he explained. “Crypto, being the riskiest but also the most rewarding asset class, stands at the top of that chain.”
This view comes as CME futures price in a 91.7% chance of a rate cut. Fed Chair Jerome Powell’s August 22 Jackson Hole speech, where he hinted at easing, further boosted investor expectations.
The CEO also linked Fed policy to his own company’s performance. Crypto.com generated $1.5 billion in revenue and $1 billion in gross profit in 2024, with Marszalek expecting an even stronger 2025.
“We have the numbers for an IPO,” he said, acknowledging investment banks have approached the company. But he added, “We’re not rushing. Staying private allows us to focus on execution, though we are preparing for when the time is right.”
Beyond trading, Crypto.com is expanding into blockchain-based prediction markets, aiming to compete with platforms like Polymarket and Kalshi. Marszalek called this sector “huge” and said Crypto.com wants to be the main U.S. liquidity hub for such markets.
Crypto.com’s native token, Cronos (CRO), recently soared 150% after the company announced a partnership with Trump Media & Technology Group, the owner of Truth Social. The deal centers on CRO’s treasury strategy.
Although CRO has since pulled back to $0.27, it remains a key part of Crypto.com’s growth narrative.
“Partnerships like this build long-term credibility for CRO,” Marszalek said, even as traders eye its 2021 all-time high of $0.96.
Risks: Rate Cuts vs. Rising Bond Yields
Not everyone is convinced a Fed cut will guarantee a smooth rally. Analysts at The Kobeissi Letter warn of a troubling disconnect:
- Markets see a 90% chance of a 25 bps cut, with even talk of up to 75 bps this year.
- Yet Treasury yields are climbing instead of falling. The 30-year note yield has hit 5%, levels not seen since the 2008 financial crisis.
Over $200 billion in bonds issued in just five weeks is pushing investors to demand higher returns, raising concerns about U.S. fiscal stability.
This paradox means crypto could see heightened volatility in Q4 2025. As Marszalek put it:
“Monetary policy will drive momentum, but macro risks like soaring yields are the wild card.”
What It Means for Crypto Investors
The Federal Reserve’s next policy meeting is scheduled for September 17, and markets are heavily betting on a rate cut. This matters because cheaper money has historically fueled rallies in risk assets, with crypto often leading the charge.
If history repeats, digital assets could see another strong double-digit surge, similar to the gains following late 2024’s cuts.
However, the risk lies in rising U.S. bond yields and mounting deficit concerns, which could spark volatility and dampen momentum even if the Fed does move to ease policy.
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FAQs
The next Federal Reserve meeting is scheduled for September 17, 2025, where policymakers are expected to decide whether to cut interest rates.
Markets currently price in a 91.7% chance of a rate cut, with the Fed expected to lower rates by at least 25 basis points, and some analysts even predicting cuts of up to 75 basis points by year-end.
At the August 22 Jackson Hole symposium, Fed Chair Jerome Powell hinted at easing, saying the Fed is prepared to adjust policy to support growth if inflation continues cooling.
According to CME FedWatch data, there is a 91.7% probability of a rate cut in September.
