Crypto Rally Continues as Bitcoin and Altcoins Rise Amid Executive Order and Interest Rate Cut Expectations

The crypto market is rallying on Thursday, August 7, with Bitcoin and altcoins rising ahead of President Trump's executive order on alternative assets for retirement funds and growing expectations of Federal Reserve interest rate cuts. The market capitalization of all coins has jumped to over $3.83 trillion, with most altcoins in the green. Bitcoin price has reached $116,500, forming bullish chart patterns pointing to further gains.

The crypto market is rallying on Thursday, August 7, with Bitcoin and altcoins rising ahead of President Trump's executive order on alternative assets for retirement funds and growing expectations of Federal Reserve interest rate cuts. The market capitalization of all coins has jumped to over $3.83 trillion, with most altcoins in the green. Bitcoin price has reached $116,500, forming bullish chart patterns pointing to further gains.

The recovery in the crypto market comes after a weekend selloff triggered by weak US payroll data and an unexpected Federal Reserve resignation. The CME FedWatch tool now shows an 80% chance of a rate cut in September, up from just 40% on Friday [1]. The shift in sentiment has triggered a modest recovery in crypto markets, which shed more than $150 billion in value on Friday. Bitcoin fell to a three-week low of around $112,000 over the weekend before bouncing to $114,500 on Monday [1].

President Trump's executive order on alternative assets for retirement funds could also boost the crypto market. The order aims to expand investment options for retirement funds, potentially allowing them to invest in digital assets. While the specifics of the order are yet to be released, the mere announcement has sparked optimism among crypto enthusiasts [2].

The Federal Reserve's expected rate cut is another key factor driving the crypto market's recovery. The Fed's last-minute rate cut in late 2024 saw Bitcoin's price double by year's end. Analysts are drawing parallels to this period, with the CME FedWatch tool showing an 80% chance of a rate cut in September [1]. Two Fed officials already dissented against holding rates steady from last week’s meeting, adding to speculation that the FOMC may be nearing a tipping point [1].

Bitcoin's historical patterns may also favor the bulls. While August returns have been mixed, Bitcoin has often rallied in September and October during prior easing cycles, according to data from Coinglass [1]. Bitcoin has gained 0.9% over the past 24 hours and is trading at $114,560. Ethereum is up 2.7% in the same period to $3,550 [1].

The broader crypto market is also showing signs of recovery. Most top ten tokens on CoinMarketCap have posted solid daily gains, with Bitcoin Layer 2 project Bitcoin Hyper ($HYPER) pulling in just under $7.5M in its presale [3]. The Fear & Greed Index is creeping towards ‘Greed’ territory, hinting at renewed confidence across the board [3].

While the crypto market's recovery is promising, investors should remain cautious. The same volatility that drove gains could also pose risks in a downturn. The Q2 results highlight the potential of alternative allocations to deliver superior returns, but also the need for careful risk management [2].

References:
[1] https://finance.yahoo.com/news/bitcoin-bulls-bet-fed-rate-090958361.html
[2] https://www.ainvest.com/news/bitcoin-news-today-strategy-q2-earnings-surpass-goldman-sachs-3x-bitcoin-rally-2508/
[3] https://www.mitrade.com/insights/news/live-news/article-3-1020682-20250807