Wharton professor Jeremy Siegel has called for the Federal Reserve to implement an emergency rate cut of 75 basis points to address a liquidity crisis as markets, including cryptocurrencies, face significant drops due to recession fears. In just 24 hours, the cryptocurrency market lost over $300 billion, with Bitcoin and Ethereum experiencing double-digit declines. The U.S. stock market also suffered, losing $1.93 trillion at market opening on August 5. Siegel’s proposed rate cut could alleviate some pressure on financial markets, potentially stabilizing crypto prices. Meanwhile, spot Bitcoin ETFs saw high trading volumes, indicating institutional interest. Bettors on the Polymarket platform are predicting three 75 basis point cuts between August and December. However, it remains uncertain whether the Fed will adopt such aggressive measures or how the crypto markets would respond.
