Crypto Markets Rally on Fed Rate Cut Signals and AI Token Breakout

Crypto Markets Rally Amid Fed Signals and AI Boom
A financial market dashboard showing rising crypto charts, Bitcoin and Ethereum price movements, and AI token momentum boosted by Fed rate cut expectations.

New York, USA | November 27, 2025 :

Cryptocurrency markets surged today as renewed hopes for a Federal Reserve rate cut and strong momentum in AI-linked tokens boosted investor sentiment. While Bitcoin briefly dipped below $88,000, Ethereum pushed toward the $3,000 mark, continuing its upward trend amid growing institutional interest.

The AI crypto segment outperformed the broader market, jumping nearly 2%. KAITO spiked 12.5%, and Bittensor rose 7.3% following major partnership expansions in decentralized computing—signaling rising demand for AI-powered blockchain infrastructure.

Other sectors such as SocialFi, DeFi, and meme coins also rebounded, though PayFi tokens and Layer-2 projects like zkSync experienced mild declines. Market optimism strengthened after Texas announced a $5 million Bitcoin purchase, underscoring increasing state-level adoption of digital assets.

Analyst Tom Lee of Fundstrat reiterated his bullish outlook on Ethereum, projecting a potential “supercycle” that could push the asset to $7,000–$9,000 by early 2026, even with expected near-term pullbacks to $2,500. Regulatory clarity and institutional integration remain key drivers of this long-term scenario.

At the Federal Reserve’s Payments Innovation Conference, discussions on stablecoins and AI-driven financial systems highlighted blockchain’s role in real-time payments. Still, analysts caution that volatility could spike due to U.S. election uncertainties.

Adding to the buzz, China’s DeepSeek AI issued bold year-end forecasts: XRP at $2.50, Solana at $500, and Cardano at $3. The broader rally mirrors similar gains in U.S. equity markets and reflects crypto’s growing sensitivity to macroeconomic cues ahead of key economic data releases expected tomorrow.

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