The upcoming U.S. FOMC meeting, scheduled for December 10, is expected to bring a 25 basis point interest rate cut. The FOMC's decision could bring the rate to 3.50% – 3.75% and could be very favorable for the crypto market.
Currently, the chance of an interest rate cut is 87.2%, while there is a 12.8% chance that there will be no interest rate cut. If the former happens, cryptocurrencies could rise because lower interest rates typically drive capital into riskier assets like crypto. However, a harsh surprise could suppress demand, especially since Bitcoin has fallen 20% in 90 days.
Therefore, BeInCrypto has analyzed three altcoins that could benefit from the interest rate cut by the Fed.
Fartcoin (FARTCOIN)
FARTCOIN has proven to be a strong performer this week, rising 32% in seven days despite bearish market conditions. The altcoin is now trading at $0.404 and continues to show resilience as broader sentiment attempts to stabilize.
The RSI indicates healthy bullish momentum, with the indicator above the neutral line. This trend could support further increases, allowing FARTCOIN to break through $0.417 and potentially reach $0.470 if buyers remain active and market signals stabilize.
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If the expected interest rate cut does not improve sentiment, FARTCOIN may struggle to sustain its rally. A loss of momentum could push the price below $0.358. This could mean a drop towards $0.320 or even $0.280, which would invalidate the bullish expectation.
Bitcoin Cash (BCH)
Bitcoin Cash has risen nearly 11% this week, making it an important altcoin to watch as markets prepare for possible reactions to interest rate cuts. As a namesake of Bitcoin, BCH often follows BTC’s momentum, meaning a BTC rally could directly translate into BCH’s price action.
The Parabolic SAR confirms an active upward trend, indicating sustained bullish momentum. If this strength continues, BCH could rise towards $624. This is only possible if it succeeds in converting $593 into a stable support level. Securing this range is essential for continuing recovery.
If investors focus on profit-taking, BCH may undergo a sharp reversal. Losing the $593 support could send the altcoin down to $555 or lower. This would invalidate the bullish expectation and expose BCH to deeper corrective pressure.
Double Zero (2Z)
The 2Z price has risen by 21%, bringing the altcoin into the top 100 of crypto assets. It is trading at $0.1382, just below resistance at $0.1433. Maintaining this range is crucial as momentum builds in the broader market.
The MACD signals a strengthening of bullish momentum, which may increase if the interest rate cut leads to additional upward movement. A successful move above $0.1433 could open the way to $0.1581, supported by improving technical and market conditions.
If uncertainty prevails or investors sell during strength, 2Z may face a turnaround. A drop to $0.1296 or even $0.1199 would invalidate the bullish expectation and expose the altcoin to deeper corrective pressure.
