According to recent analysis from the International Monetary Fund, the U.S. economy is showing solid growth momentum backed by three main drivers. First, aggressive AI investment is bolstering productivity and corporate earnings expectations. Second, new tax incentives are encouraging business expansion and consumer spending. Third, and perhaps most significant for markets, the Fed's policy rate cuts are providing relief to borrowing costs across the economy.

What caught many observers off guard: the tariff situation appears less severe than initially feared. Rather than the steep across-the-board increases traders braced for, actual rates have come in measurably lower, easing concerns about imported inflation and supply chain disruption.

For crypto participants, this cocktail of factors matters. Lower policy rates historically reduce the opportunity cost of holding non-yielding assets like Bitcoin and altcoins. Stronger economic growth can support risk appetite more broadly. And if tariff fears are genuinely subsiding, that removes a major downside tail risk for equities—which tends to lift sentiment across risk assets, including digital currencies.