If Powell backtracks and gives signals about interest rate cuts, it doesn't mean that an altcoin rally will start immediately; however, risk appetite will certainly increase.

If this happens, we can expect a bullish movement in most altcoins, especially L1 and DeFi platforms.

Why?
The FED's signal of a rate cut provides liquidity to the market and brings demand for risky assets.

Take a look at the historical correlation between the FED's interest rate policy and altcoin seasons for better understanding.

As seen, while interest rate cuts and monetary abundance have a positive effect on the crypto market, tight policies and interest rate hikes have a negative impact.

The flow of liquidity in crypto generally works as follows:
BTC → ETH → Big L1 → DeFi/NFT → Micro altcoins

If this scenario occurs, the first wave is fundamentally strong: it will be seen in projects like $APT, $SOL, $AVAX, $SUI, and the ETH L2 ecosystems. Later, liquidity will shift to meme coins and low market cap projects.

If you are already making a basket:
• Having strong teams,
• Expanding its ecosystem and areas of use,
• Established strong partnerships,
• It is necessary to choose projects with a solid economic model.

I personally closely follow the reports of investment institutions and reliable news sites for the assets in my portfolio.
Astronomical but not impossible targets have already started to be mentioned for some coins.
Of course, these are speculations; but the only thing needed for it to happen is a strong altcoin rally.

Example: For the aforementioned $APT, #Tronweekly is setting a target of $19.9 before the end of 2025. For the longer term, they have even brought up the $50 level.
This is quite a bold prediction.
🔻

In summary:
It seems that the FED's interest rate cut will come at a point not too far away. For the first time since 1993, we see that 2 of the FED members voted against. We know that this will increase risk appetite, but if it is accompanied by liquidity abundance, then the long-awaited altcoin rally may begin.