Crypto Boom Expected in Late 2025 Amidst Fed Rate Cut Predictions

Crypto.com CEO Kris Marszalek predicts a Fed rate cut on September 17 could spark a massive crypto rally in Q4 2025, citing historical precedent. A rate cut in late 2024 led to a 57% surge in digital asset markets in just four months. Crypto.com generated $1.5 billion in revenue and $1 billion in gross profit in 2024, with Marszalek expecting an even stronger 2025.

Crypto.com CEO Kris Marszalek has expressed optimism about the potential impact of a Federal Reserve rate cut on the crypto market, particularly during the fourth quarter of 2025. Marszalek, in an interview with Bloomberg, predicted that a rate cut could lead to a significant rally in the crypto market, citing historical data from the Fed's last rate cuts in late 2024.

The likelihood of a rate cut has increased significantly, with CME futures prediction markets showing a 91.7% probability of a 25-basis-point reduction following Fed Chair Jerome Powell's speech at Jackson Hole on August 22 [1]. Marszalek highlighted that a rate cut at the September 17 meeting would likely spark a surge in risk appetite, which historically supports crypto demand [1].

Historically, a rate cut has been favorable for crypto markets. In late 2024, the Fed's rate cuts led to a 57% surge in crypto markets over four months [2]. Marszalek expects a similar trend this year, driven by reduced borrowing costs and revived basis trade potential [2]. The basis trade, which profits from the difference between spot and futures prices, has been subdued in 2025 due to high funding costs and low volatility [3].

Crypto.com is well-positioned to benefit from this shift in monetary policy. The company reported $1.5 billion in revenue in 2024 and $700 million in reinvested gross profit [2]. Marszalek expects 2025 to be even stronger, especially if the Fed follows through with a rate cut [2].

In addition to rate cut expectations, Crypto.com has made strategic moves to expand its market presence. The company recently partnered with Trump Media and Technology Group to establish a treasury strategy for its native token, Cronos (CRO). Following the announcement, the token surged nearly 150% but has since pulled back to $0.27, reflecting broader market volatility [2].

Marszalek also emphasized the company's interest in prediction markets, stating that the space represents a significant growth opportunity. He described the firm's goal as becoming a leading liquidity provider in the U.S. for prediction market contracts [2].

While the anticipated rate cut presents a positive outlook for digital assets, Marszalek cautioned that the broader economic environment remains a variable. A rate cut could occur due to growing concerns over economic slowdowns, which could dampen investor sentiment despite eased monetary policy. Additionally, the success of digital assets like Cronos will depend on their real-world utility and adoption [2].

References:
[1] https://www.fool.com/investing/2025/09/02/heres-why-a-fed-rate-cut-could-be-great-news-for-x/
[2] https://cointelegraph.com/news/crypto-com-ceo-bets-fed-rate-cut-fuel-crypto-markets-in-q4
[3] https://www.coindesk.com/markets/2025/09/02/federal-reserve-rate-cut-could-spark-a-revival-in-bitcoin-s-basis-trade