Goldman Sachs Predicts June Rate Cut: Here’s Why Crypto Could Explode

Wall Street's crystal ball just flashed a bullish signal for digital assets. Goldman Sachs is calling for a Federal Reserve rate cut in June—and the crypto markets are already starting to hum.

The Liquidity Tsunami

Lower interest rates don't just make borrowing cheaper. They trigger a massive hunt for yield. When traditional savings accounts and bonds offer paltry returns, capital floods into riskier, higher-growth assets. Sound familiar? That's the exact environment where Bitcoin and its peers historically thrive. It's the old adage: money goes where it's treated best, and right now, that's not in a 0.5% APY savings account managed by a legacy bank that still uses fax machines.

Beyond Bitcoin: The Altcoin Rally

While Bitcoin acts as the market's flagship, a rate cut could ignite the entire ecosystem. Expect renewed institutional interest in Ethereum for its smart contract utility, and a surge in speculative capital flowing into high-potential altcoins. The narrative shifts from 'risk-off' to 'growth-on,' making decentralized finance (DeFi) protocols and layer-1 blockchains prime candidates for revaluation.

The Institutional Floodgates

This isn't 2021's retail-driven mania. Today, the infrastructure is built. Spot Bitcoin ETFs are live, regulated custodial solutions are robust, and major asset managers have their playbooks ready. A dovish Fed pivot provides the macro green light these players have been waiting for, potentially unlocking billions in sidelined institutional capital.

A Word of Caution

Markets are forward-looking. The 'buy the rumor, sell the news' dynamic is real. Much of this optimism may already be priced in by June. Furthermore, crypto remains volatile—a rate cut is a powerful tailwind, not a guarantee against turbulence.

So, is this the start of the next mega-cycle? The Fed might just be handing crypto the matches. The market is drenched in gasoline. All it needs is the spark.

Will The Cryptocurrency Market Enter A Bull Run in 2026?

The cryptocurrency market often sees an uptick in investments after an interest rate cut. Investors take on more risks as borrowing becomes easier. However, this trend was not observed in the October 2025 and December 2025 interest rate cuts. 2025’s pivot from the usual trend could be due to macroeconomic uncertainties. The argument was further supported by the fact that gold and silver hit multiple all-time highs in late 2025. Investors were likely moving their funds from risky assets, such as cryptocurrencies, to SAFE havens, such as gold and silver.

The current market trend also follows a risk-averse approach. Gold has hit yet another all-time high, breaching the $4,600 mark for the first time in its history. The development could mean that the cryptocurrency market is still not attractive to investors.

With that said, perhaps a delayed interest rate cut could be a good thing for the cryptocurrency sector. Macroeconomic uncertainties could dip over the coming months, and a rate cut by June could trigger a market-wide rally.

However, Federal Reserve Jerome Powell is facing substantial pressure from President Donald Trump. There is a chance that Powell could be replaced with a pro-Trump candidate very soon. Such a scenario could lead to an earlier interest rate cut than expected.