The Federal Reserve is having a closed-door meeting today to discuss potentially cutting interest rates. This would help crypto in a few ways, spurring risky investments and possibly even weakening the dollar.

Fed Chair Jerome Powell has been hesitant to cut rates, but he is under a lot of pressure. BlackRock’s CEO Larry Fink is currently pessimistic about rate cuts, claiming that they may even increase this year.

Will the Fed Consider Rate Cuts?

Trump’s tariff threats have the entire market in freefall, as billions have been liquidated from crypto and TradFi alike. The rumor of a 90-day pause on tariffs caused a dramatic rally earlier today.

Soon after, the White House denied the rumors, resulting in a crash. However, the Federal Reserve is having a closed-door meeting today, and it may plan to cut interest rates:

“A closed meeting of the Board of Governors of the Federal Reserve System at will be held 11:30 am on Monday, April 7, 2025. The following matters of official Board business are tentatively scheduled to be considered at that meeting: review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks,” the Fed’s website read.

There are many reasons why the Federal Reserve could cut interest rates. High rates make fixed-income investments more attractive, drawing capital away from riskier assets like stocks and cryptocurrencies, while low rates make these assets more attractive.

Rate cuts have often corresponded with market rallies, especially with ZIRP after the 2008 crash.

Now that most of the market is predicting a recession, the Federal Reserve could cause a rally with these rate cuts. The crypto market recently hoped for rate cuts, which the FOMC quickly rejected.

Fed Chair Jerome Powell initially signaled that he was reluctant to cut rates at this moment, but pressure has been building for him to do so. Unfortunately, that may not matter yet.

Larry Fink, BlackRock’s pro-crypto CEO, has been very pessimistic about possible cuts. In a recent televised interview, he claimed that most CEOs believe the US is already in a recession and that the country is currently not a “global stabilizer” in the markets.

Under these conditions, he stated that there’s a 0% chance of 4 to 5 rate cuts and that rates may even increase.

Are Interest Rate Cuts Always Bullish for Crypto?

When the Federal Reserve cuts interest rates, it isn’t a bullish signal across the board. They also tend to weaken the US dollar as its yield advantage diminishes relative to other currencies.

This would also be good for crypto, considering its use as a store of value, but the Fed isn’t particularly interested in that. The industry won’t be the deciding factor either way.

Still, other commentators have been highly skeptical of Fink’s claim. Powell is under a lot of pressure to cut rates, so raising them would buck market expectations. Investors are betting on multiple rate cuts, and these hypothetical cuts may be priced to a certain extent.

Looking back at previous cycles, periods of rate cuts have often coincided with market rallies. For instance, during the post-2008 recovery, rate cuts revived equity and emerging asset classes.

Overall, lower rates typically mean easier access to credit, leading to more liquidity in the market. This extra liquidity can help drive up demand for riskier assets, including cryptocurrencies.

So, If the FOMC signals a shift toward lower interest rates, this could boost overall market confidence. As traditional markets begin to stabilize and recover, crypto markets might experience a rebound.

Investor sentiment, already shaken by the recent sell-offs and heightened volatility, could turn more optimistic with the prospect of easing monetary conditions.

Most importantly, institutional investors, who have been cautious during the current volatile period, may adjust their strategies in a lower-rate environment.

With lower fixed-income yields, portfolio managers could increase their allocation to alternative assets, including cryptocurrencies, to achieve higher returns. This influx of institutional capital could lend credibility to the crypto market and help drive a recovery.

Crypto whales are making quiet moves in Ethereum (ETH) and Optimism (OP), while accumulation remains stagnant—or even negative—across most other major coins. Between April 4 and 6, both ETH and OP saw a notable increase in large wallet holders despite a harsh market correction.

This behavior often signals early confidence from institutional players, hinting at potential reversals ahead. With ETH nearing $1,400 and OP trading at three-year lows, the next few days could be pivotal if whale accumulation translates into renewed bullish momentum.

Ethereum (ETH)

Between April 5 and April 6, crypto whales accumulated ETH. The number of Ethereum whale wallets—those holding between 1,000 and 10,000 ETH—increased from 5,340 to 5,388, signaling a quiet accumulation phase during the broader market correction.

Tracking these large holders is crucial, as their behavior often precedes major market moves; when whales accumulate, it can indicate growing confidence in the asset’s long-term value and hint at a potential trend reversal.

If Ethereum’s current downtrend continues, ETH price could break below $1,400 for the first time since January 2023, opening the door to deeper losses.

However, the recent uptick in whale activity suggests some optimism beneath the surface. If momentum shifts and ETH manages to reclaim $1,748, it could rise further toward $1,938 and, with a strong enough rally, even retest the $2,000 mark—restoring a key psychological and technical level for bulls.

Optimism (OP)

The number of Optimism whale wallets—holding between 10,000 and 1,000,000 OP—rose from 4,138 on April 4 to 4,151 on April 6, suggesting that large holders are accumulating despite the ongoing market correction.

This increase in whale activity may indicate long-term confidence in the project, even as the broader market faces heavy selling pressure.

In periods of uncertainty like now, such accumulation can be an early sign of a potential price reversal, as institutional or high-net-worth investors often act ahead of retail sentiment.

Currently trading near its lowest levels in nearly three years, OP is under significant downward pressure. If the correction persists, the token could break below the $0.50 support level.

However, if the recent whale accumulation reflects a shift in momentum, OP could rebound to test resistance at $0.65.

A breakout from that level may open the path toward $0.77 and, in a stronger recovery, even retest $0.84.

MANTRA is planning to launch a $108,888,888 Ecosystem Fund to drive RWA innovation over the next four years and help accelerate projects in MANTRA’s blockchain ecosystem.

MANTRA’s native token OM has shown significant resilience in the current market downturn. OM is currently the only altcoin among the top 30 tokens to have posted positive gains over the past 24 hours. 

MANTRA’s RWA Ecosystem Fund

MANTRA, a Layer-1 blockchain for asset tokenization, is heavily invested in the RWA market. Since its mainnet launch in 2024, it has carried out major partnerships and planned to tokenize huge volumes of assets.

Today, it announced the launch of a $108,888,888 Ecosystem Fund to propel RWA innovation in its blockchain ecosystem.

“In an era where blockchain technology is revolutionizing finance, the MEF will serve as a catalyst for groundbreaking projects that drive real-world adoption through a focus upon the tokenization of real world assets. We are opening doors for visionary founders and teams to join us in building and creating a thriving ecosystem,” claimed John Patrick Mullin, founder and CEO.

Mullin delivered these comments in an exclusive press release shared with BeInCrypto. MANTRA plans to deploy this fund over the next four years, working with “a strong network of partners and investors” to maximize RWA growth.

The firm also claimed that its new license approvals in Dubai will allow it to facilitate advanced financial services.

MANTRA successfully obtained a Virtual Asset Service Provider (VASP) license, which will allow it to act as a crypto exchange and offer broker-dealer, management, and Investment Services. With these tools, the network can direct RWA investment.

Since the RWA Fund announcement, the OM token has actually performed quite well today. Given the wide-scale liquidations across the crypto market due to Trump’s tariff threats, OM has gained over 2% in the past 24 hours.

In fact, MANTRA’s native token is the only cryptocurrency among the top 30 to have any positive gains. It’s also among the top 5 highest gainers in the market today.

Overall, investors seem extremely confident in MATRA’s growth and the network’s continuous development. The project’s latest investment fund reflects its commitment to influencing positive developments in the RWA ecosystem.

Meanwhile, the find will likely encourage more RWA projects to launch or shift to the network, increasing MANTRA’s utility. According to DefiLlama, the network only has $4.2 million in total value locked (TVL).

With this fund, the project’s main goal will be to improve participation and long-term engagement on the blockchain.