Wave Digital Assets CEO to Newsmax: Rate Cut Could Be 'Bullish' for Bitcoin

Bitcoin and other cryptocurrencies edged higher before the Federal Reserve's final interest-rate decision of the year, with investors watching whether a cut could add support for risk assets.

David Siemer, co-founder and CEO of Wave Digital Assets, told Newsmax on Tuesday that lower rates typically help crypto because investors tend to seek higher returns when borrowing costs fall.

"Famously, crypto is a risk," Siemer said on "National Report." "Assets always perform well in lowering interest rates. People are always chasing returns. So we think it's very bullish for crypto, particularly Bitcoin in general."

Bitcoin traded above $92,000 early Monday, up more than 3% from the prior day after briefly slipping below $88,000 on Sunday, according to figures cited on the program.

Even with the rebound, the show noted that Bitcoin remained about 27% below its record high above $126,000 reached in October.

"Obviously, the market's been pretty choppy recently," Siemer said. "There's a lot of macro reasons why. We are very bullish that from these price levels we will see decent increases going into the next six months."

Asked about wide-ranging expectations — including scenarios where investors see Bitcoin rising as high as $120,000 or falling to $82,000 — Siemer said the near-term direction is difficult to predict, even as he pointed to policy and adoption trends as potential tailwinds.

"Yeah, it's hard to pick for crypto," he said. "It's very hard to look at the short term, so in the short term, it's hard to say if we're going to head up or down."

Still, he said the broader setup looks more constructive than it did previously, citing the rate backdrop and a possible market-structure bill expected out of Congress in the coming months.

"With the interest-rate environment, with a lot of the macro things that are happening with the market structure bill coming out of Congress in a few months, I'm much more bullish than I have been a little while from this price point," he said.

Siemer also referenced Bitcoin's history of large swings.

"Obviously, Bitcoin hit 128,000," he said. "Several months ago, it went down to 82,000 already once."

Even with a positive longer-term view, Siemer said sharp pullbacks remain part of the asset class.

"Not to say we couldn't have a shock down to 82K or lower. That's kind of how this asset class goes, but over the next six or 12 months we're very bullish," he said.

A key driver in his outlook is broader access to crypto through mainstream investment products and increased institutional participation.

"The amount of institutions adopting this asset, putting vehicles together so that retail investors can access these assets, it's just going in great directions," he said. "So there's a lot of tailwinds right now, including very deeply at the government level that I think will really push this in the right direction for us."

Siemer said an earlier source of selling pressure tied to so-called digital asset treasury companies, which have added crypto to their balance sheets, has started to ease after a major market disruption earlier this fall.

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