Cathie Wood, CEO and founder of ARK Invest, forecasts a major liquidity surge in December that could spark a powerful rally across risk assets—including cryptocurrencies. Many investors are now eyeing the potential start of a 2025 altseason, especially if the Federal Reserve delivers an expected rate cut on December 10.
With crypto showing signs of recovery, what might this mean for major altcoins like Ethereum (ETH), Ripple (XRP), and Cardano (ADA)?
(Sources:X)
Cathie Wood Sees Liquidity Flood Returning in December
Optimism is creeping back into crypto markets after the October-November bear trap appears to have run its course. Bitcoin has reclaimed levels above $91,000 this week, lifting altcoins in tandem. ETF inflows have also resumed strongly in recent days.
Yet the sector still has ground to recover just to erase November’s losses.
Wood anticipates a “liquidity shock” following the Fed’s December 10 decision, with markets pricing in an ~85% chance of a rate cut. Crypto tends to be highly sensitive to sudden shifts in liquidity flows.
November saw capital rotate out of risk assets—crypto, stocks, gold—into cash and Treasuries amid bearish pressure. Wood argues this was purely a liquidity phenomenon, not a reflection of fundamental weaknesses in crypto.
ARK’s bull targets remain largely unchanged. Wood expects Bitcoin to resume its climb, either in December or into 2026, viewing current weakness as temporary.
A rate cut would lower borrowing costs, making it less risky to allocate capital to higher-return assets like cryptocurrencies.
Analysts believe this could disproportionately benefit altcoins. Major names like ETH, XRP, and ADA are already riding Bitcoin’s coattails. If BTC pushes back above $100,000, altcoins could see outsized gains.
How Major Altcoins Could React to a Bitcoin Breakout
Ethereum (ETH) has led the recent rebound, reclaiming $3,000 this week. Trading around $3,050 with a 0.7% daily gain and 14% weekly recovery, ETH often serves as a bellwether for altcoin strength.
A sustained crypto rally could propel ETH toward $4,000+, providing a strong tailwind for the broader alt market.
Ripple (XRP) needs the boost most urgently. Last week’s crash pushed it below $2, though it has since recovered to $2.23. Still 42% below its 2018 all-time high of $3.84, XRP lags peers like ETH.
Strong fundamentals—combined with potential altseason momentum—could drive XRP to new highs as early as December.
Cardano (ADA) remains a laggard, up only 7% from last week’s lows and facing stiff resistance near $0.43. Buyer interest has been muted, but a return of risk appetite could trigger sharp upside.
ADA is another altcoin worth monitoring closely if liquidity floods back in.
Beyond blue-chip alts, smaller projects with lower market caps often deliver explosive returns in bullish environments.
A New Utility Token Launches on Major Exchanges Today
Leading exchanges are listing a fresh utility token today. $BEST from Best Wallet goes live at 13:00 CET following a highly successful presale that raised over $18 million—a clear sign of strong early demand.
As liquidity conditions potentially improve, projects like this could capture significant attention in the coming altcoin rotation.
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