Crypto.com CEO bets on Fed rate cut to fuel crypto markets in Q4

Crypto.com CEO Kris Marszalek predicted a Fed rate cut this month, which would lead to a strong fourth-quarter for the crypto market.

Crypto.com CEO Kris Marszalek is confident that digital assets will be boosted in the fourth quarter of the year, primarily driven by the US central bank reducing interest rates.

Marszalek said in an interview with Bloomberg on Tuesday that Crypto.coms revenue is likely to be better this year, “especially if we see a Fed rate cut and a strong Q4 following.”

He added that hes betting on the US Federal Reserve cutting interest rates at its Sept. 17 meeting, which is usually good for crypto as borrowing becomes cheaper and more liquidity is available for riskier investments.

The Feds last rate cuts were between September and December of last year, when it dropped rates from 5.5% to 4.5%, leading to crypto markets gaining 57% over those four months.

CME futures prediction markets show the probability of a rate cut has surged to 91.7% following Fed Chair Jerome Powells Jackson Hole speech on Aug. 22, when he hinted at easing monetary policy.

Kris Marszalek speaking on Bloomberg TV. Source: BloombergNo decision yet on IPO

Marszalek said his company “has the numbers” to do a public listing but enjoys being private and has yet to make a decision.

“I have to admit its quite tempting to consider these options,” he said on a potential initial public offering. Multiple crypto firms have raised billions of dollars this year amid their public debuts.

He added that the firm had $1.5 billion in revenue last year, and about $1 billion in gross profit with $700 million reinvested, before predicting that this year will be better.

“We have been approached by all the top names in terms of investment banks. We want to be a very well-run company, so were preparing everything, but no decisions have been made at this point.” Venturing into prediction markets

Marszalek also revealed that the firm was planning to enter the prediction market space. “We think that prediction markets are going to be huge,” he said, adding, “sports is a part of it, but its not the whole thing.”

“We want to be the liquidity center for prediction markets on-shore in the US, so well play very aggressively in that space.”

Blockchain prediction markets are currently dominated by Polymarket and Kalshi, which have hit regulatory and legal hurdles in offering event contracts in the US.

CRO surges on Trump Media partnership

Crypto.com announced a partnership with Trump Media and Technology Group, the owner of US President Donald Trumps Truth Social platform, on Aug. 26.

The agreement includes the establishment of a treasury strategy for the exchanges native token, Cronos (CRO).

The token spiked almost 150% to $0.38 following the announcement, but has since retreated to $0.27, down 72% from its November 2021 all-time high.