Crypto.com CEO Kris Marszalek expressed confidence that digital assets will receive a boost in the fourth quarter of this year, primarily driven by the Federal Reserve's interest rate cuts.
Marszalek stated in an interview with Bloomberg on Tuesday that Crypto.com’s revenue is expected to increase this year, “especially as we see the Fed cut rates and the strong fourth quarter that follows.”
He added that he is betting on the Fed announcing a rate cut at its meeting on September 17. Typically, this is favorable for the cryptocurrency market as lower borrowing costs increase liquidity for high-risk investments.
Data shows that the last rate cut by the Fed occurred between September and December of last year, with rates dropping from 5.5% to 4.5%. During those four months, the crypto market rose by 57%.
CME futures prediction market data indicates that the probability of a rate cut surged to 91.7% after Fed Chair Powell made dovish comments at Jackson Hole on August 22.
Marszalek stated that the company “meets the criteria for going public,” but currently prefers to remain private and has not made a final decision.
When discussing a potential initial public offering, he remarked, “I have to admit that considering these options is indeed quite tempting.” This year, several crypto companies have raised billions of dollars through public listings.
He added that the company’s revenue last year was $1.5 billion, with a gross profit of about $1 billion, of which $700 million was reinvested, and he expects further improvement in performance this year.
Marszalek also revealed that the company plans to enter the prediction market space. He said, “We believe the prediction market will be very large,” adding that sports is just one part of it, but not the entirety.
He further stated, “We want to become the liquidity center for domestic prediction markets in the U.S., so we will take a very aggressive approach in this area.”
Currently, the blockchain prediction market is mainly dominated by Polymarket and Kalshi, but they face regulatory and legal hurdles when offering event contracts in the U.S.
Crypto.com announced on August 26 that it has established a partnership with Trump Media and Technology Group, which owns former President Trump’s Truth Social platform.
The agreement includes developing a fund management strategy for the exchange's native token, Cronos (CRO).
Following the announcement, the token's price surged nearly 150% to $0.38, before retreating to $0.27, down 72% from its all-time high in November 2021.
Related: Citigroup survey shows that by 2030, cryptocurrencies are expected to account for one-tenth of the global post-trade market.
Original article: “Crypto.com CEO Bets Fed Rate Cut Will Fuel Crypto Markets in Q4”
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