Crypto.com CEO "If the Fed cuts rates in Q4, crypto assets will show strength"

Crypto exchange Crypto.com CEO Kris Marszalek said that if the Federal Reserve (Fed) cuts rates at this month's meeting, the crypto market will be strong in the fourth quarter this year.

According to Cointelegraph on the 3rd (local time), Marszalek said in a Bloomberg interview, "If a Fed rate cut in September materializes in particular, Crypto.com's performance this year will be better than last year."

Marszalek said he expects a rate cut at the Fed meeting on September 17. He explained that a rate cut lowers borrowing costs and increases liquidity toward risk assets, which would be positive for the crypto market. When the Fed cut rates from 5.5% to 4.5% from September to December last year, the crypto market rose 57% over four months.

On the Chicago Mercantile Exchange (CME) futures market, the probability of a September rate cut has been reflected at 91.7% after Chair Jerome Powell signaled a dovish monetary policy in his Jackson Hole speech on August 22.

He also mentioned the possibility of an initial public offering (IPO). He said Crypto.com meets listing requirements but prefers to remain private for now, adding, "Honestly, considering an IPO is tempting, but we have not made a decision at this time." Crypto.com recorded $1.5 billion in revenue and $1 billion in gross profit last year, and it is reported to have reinvested $700 million of that.

Marszalek also unveiled plans to enter prediction markets, saying, "The prediction market will grow into a huge market," and emphasizing, "It will not be limited to sports and will become an onshore liquidity hub in the U.S." Currently, prediction markets are led by Polymarket and Kalshi, but they face regulatory and legal challenges.

Meanwhile, on August 26, Crypto.com entered a partnership with Trump Media & Technology Group. The two sides agreed to cooperate on financial strategy for the exchange's native token Cronos (CRO), and immediately after the announcement CRO's price surged 150% to $0.38. However, it has since fallen to $0.27, 72% below the all-time high recorded in November 2021.