Crypto.com CEO Bets on Fed Rate Cut to Power Crypto Assets This Fall

TLDR

• Kris Marszalek predicts the Fed’s September rate cut will boost Q4 for crypto markets.
• Crypto.com CEO expects better 2025 performance with increased institutional adoption.
• Marszalek teases IPO as Crypto.com sees $1.5B revenue, with a strong Q4 forecast.
• Prediction markets and CRO token surges are part of Crypto.com’s growing strategy.

Crypto.com CEO Kris Marszalek is optimistic about a strong crypto market in Q4, banking on a potential interest rate cut by the U.S. Federal Reserve. He predicts that such a move would lower borrowing costs, increase liquidity, and provide a much-needed boost to digital assets.

Marszalek Predicts Strong Q4 for Crypto Amid Potential Fed Rate Cut

Kris Marszalek, CEO of Crypto.com, is predicting a strong fourth quarter for the cryptocurrency market, driven by an expected interest rate cut by the U.S. Federal Reserve.

In an interview with Bloomberg, Marszalek expressed confidence that the anticipated reduction in borrowing costs would increase liquidity and create favorable conditions for risk assets like cryptocurrencies. He stated, “Every time the Fed eases, crypto markets feel the impact almost instantly.”

The Fed’s decision to cut interest rates would make borrowing cheaper and provide more liquidity in the market, allowing investors to take on riskier investments. Marszalek’s prediction is rooted in history, citing previous rate cuts, including those made between September and December 2024, which led to a 57% increase in the crypto markets over a four-month period.

High Probability of a Rate Cut

CME futures markets show that there is a 91.7% probability of a rate cut following Fed Chair Jerome Powell’s August speech, in which he hinted at easing monetary policy. The predicted rate cut is expected to be announced during the Federal Reserve’s meeting on September 17, 2025.

Should the rate cut happen, Marszalek believes it would inject liquidity into the crypto market and potentially drive significant price appreciation for Bitcoin, Ethereum, and other altcoins.

With the crypto market’s inherent volatility, any decrease in interest rates is often seen as a positive catalyst, as it helps to lower the cost of borrowing and enhances the appeal of risk assets like cryptocurrencies. Marszalek is betting on the impact of this potential rate cut to help Crypto.com and the broader crypto ecosystem experience a strong finish to the year.

Crypto.com’s Strong Financial Performance

Marszalek also shared his expectations for Crypto.com’s financial performance, forecasting an even stronger 2025. He noted that in 2024, Crypto.com generated $1.5 billion in revenue, with $1 billion in gross profit. Despite the challenges of the broader market, Marszalek remains optimistic about the company’s future, expecting that this year’s performance will be better due to an influx of institutional investment and increased adoption of digital assets.

Regarding the possibility of an IPO, Marszalek revealed that Crypto.com has been approached by several top investment banks. However, despite these offers, the company remains private and continues to enjoy the operational flexibility of a privately held firm. Marszalek explained, “We have the numbers for an IPO, but we’re not rushing. Staying private allows us to focus on execution.”

Along with financial growth, Crypto.com is venturing into new areas. Marszalek mentioned the company’s plans to expand into the prediction market space, with a focus on sports betting and political event markets. Crypto.com aims to become the U.S. liquidity hub for these markets, directly competing with platforms like Polymarket and Kalshi.

CRO Token Surge Amid Trump Media Deal

Another significant development for Crypto.com is its partnership with Trump Media and Technology Group, announced on August 26. This collaboration, which focuses on managing the treasury strategy for Crypto.com’s native token, Cronos (CRO), caused the token’s value to surge by almost 150%. While the price has since pulled back to around $0.27, it remains a central part of Crypto.com’s growth strategy.

Marszalek noted that partnerships like these help build long-term credibility for CRO, even as the token remains far from its all-time high of $0.96 reached in November 2021.

Despite the optimism surrounding a potential rate cut, there are risks. Some analysts have warned about the disconnect between the expected rate cuts and rising bond yields. The 30-year U.S. Treasury note yield has recently hit 5%, which could signal concerns about fiscal stability and lead to heightened volatility in the broader markets. Marszalek acknowledged that while the Fed’s monetary policy could drive momentum, macroeconomic risks like rising yields could complicate the market outlook

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