The crypto market woke up green today. Bitcoin edged higher by 0.38%, Solana gained 1.85%, Pepe exploded by 13%, and Avalanche climbed 7%.
Many other coins are also showing gains, leaving investors wondering what exactly is driving the sudden optimism. The answer seems to lie in a mix of global market signals, a big moment for altcoins, and anticipation around interest rate policy.
What you'll learn 👉
Record-Setting Global Markets Creating Confusion
A page known as Global Markets Investor on X shared a post that shows a strange and almost contradictory picture of the economy. According to the post, the S&P 500, U.S. home prices, Bitcoin, gold, money supply, and public debt have all reached all-time highs.
At the same time, the U.S. labor market is in a recession, and the Federal Reserve is preparing to cut rates next week.
🚨This has never happened before:
— Global Markets Investor (@GlobalMktObserv) September 12, 2025
S&P 500: all-time high
US Home Prices: all-time high
Bitcoin: all-time high
Gold: all-time high
Money Supply: all-time high
Public Debt: $37.4 TRILLION – an all-time high
US labor market: in a RECESSION.
And the Fed is going to cut rates next… pic.twitter.com/lsC4GNjRaX
This combination is unusual. Normally, economic weakness would weigh on markets, yet we are seeing both risk assets like stocks and crypto, and defensive assets like gold, all climbing at the same time.
This rare alignment suggests that liquidity and money supply are playing a major role. The possibility of cheaper borrowing costs from rate cuts could be fueling risk-on behavior across the board.
Altcoins Flirting With a Breakout
CryptoELITES shared a chart of the Total3 market cap, which tracks the performance of all altcoins excluding Bitcoin and Ethereum. The chart shows a long-term descending trendline pressing down on prices, with a strong horizontal support below.
Altcoins have compressed right against that resistance line, forming a setup that often precedes an explosive move. If this level breaks upward, it could confirm the start of what traders call an altcoin season, a period where smaller cryptocurrencies outperform Bitcoin.
The chart shows a breakout scenario where the arrow points sharply higher, signaling that altcoins may be ready to rally. This matters because when altcoins gain momentum, the broader market often sees higher trading activity and renewed investor enthusiasm.
Anticipation Around Rate Cuts This September
There is also anticipation around a possible rate cut this September, and the market seems to be reacting positively to it. A post by mon, another crypto commentator, explains why many investors misunderstand rate cuts. Historically, rate cuts have coincided with market downturns such as the dot-com crash, the financial crisis, and the COVID-19 crisis. However, as mon points out, those cuts were reactions to crises, not causes of them.
My thoughts on rate cuts:
— mon (@moninvestor) September 6, 2025
Some people fear that interest rate cuts will crash the market, and historically, there's a reason for that concern. As per the below chart, major rate cutting cycles have coincided with significant market downturns, such as the Dot-com Crisis, the… pic.twitter.com/ioyumIa6hU
Today’s situation is different. Instead of responding to a market collapse, rate cuts are expected while the economy is still expanding. One of the key drivers is the massive investment wave in artificial intelligence. Companies like Meta, Apple, and Google are committing hundreds of billions of dollars to AI infrastructure. From data centers to energy needs, this spending could fuel growth across sectors.
Cheaper borrowing costs from a rate cut would lower the cost of financing these projects, giving AI-related businesses even more firepower. That shift in capital could spill over into crypto as investors look for assets tied to the digital economy.
The Bitcoin and Altcoins Rally Are Not Tied to a Single Factor
The crypto market’s strength today is not tied to one single factor. Instead, it’s a mix of global liquidity, unusual economic signals, and technical setups in altcoins. Bitcoin and large-cap assets are holding steady, while the possibility of an altcoin breakout looms. Rate cut expectations add another layer, suggesting that capital may soon flow even more aggressively into growth sectors, with crypto positioned as a beneficiary.
Read Also: Google Trends Signals Renewed Interest in Shiba Inu: How High Can SHIB Price Go Next?
This environment feels like a crossroad moment. If CryptoELITES is right about the Total3 breakout, altcoins could lead the next leg higher. If mon’s analysis holds, the expected rate cuts may act as fuel rather than a warning sign. The unusual alignment that Global Markets Investor pointed out shows that markets are in uncharted territory.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
