US Federal Reserve Chairman Jerome Powell and rate cuts dominated Web3 thoughts this week, but some still had time to weigh in on gold and crypto.

Speaking of rate cuts…

“The Federal Reserve’s rate cut was widely expected, though it comes at a unique moment without access to key data points like labor and inflation figures due to the government shutdown. Historically, lower rates have been supportive of digital assets, and we’d expect that trend to continue.

“As we move through earnings season, market sentiment will likely remain sensitive to corporate results and outlooks. Strong earnings could reinforce confidence in the recovery narrative, while softer results might highlight the uneven effects of current economic conditions. Overall, a lower-rate environment tends to be constructive for both equities and digital assets, and we view this backdrop as broadly positive for crypto as investors look toward alternative and growth-oriented assets.”

– Andrew Forson, president, DeFi Technologies

“The big day is here, and the markets have already priced in a 25 basis point rate cut later today. But it’s still worth getting out the popcorn for Jerome Powell’s customary press conference, because it’s the rhetoric and the forward guidance that investors will be waiting for with bated breath.

“While economists still expect to see two rate cuts this year, opinions are diverging on whether this truly is the best policy move. The debate has certainly become incredibly politically charged, so Chair Powell is walking a precarious tightrope right now. Today will shed light on whether politics or data is in the driving seat.

“The ongoing uncertainty, which has dominated markets all year, is perhaps the reason we are not seeing more euphoria in the cryptocurrency space. Indeed, Bitcoin is exhibiting a potential double top pattern, a bearish signal, and daily exchange volumes have dropped off a cliff.

“In the long term, the investment case for Bitcoin and other risk assets remains intact. We’re seeing easing monetary conditions across the globe – not just the US – so fiat currency debasement is inevitable. In the short term, though, volatility still reigns supreme. Any trader considering high leverage in this market should think long and hard before committing.”

– Nic Puckrin, investment analyst and co-founder of The Coin Bureau

“The Fed’s decision to lower the federal funds rate for the second time this year signals a welcome recognition of moderating inflationary pressures and the need to support growth in a high-uncertainty environment. From the perspective of Naoris, which operates at the intersection of cybersecurity and next-generation infrastructure, the policy move carries both opportunity and caution.

“On the opportunity side, easier monetary conditions may help stimulate risk-taking, venture capital deployment, and innovation — elements that are essential for decentralized security frameworks and Web3 ecosystems that Naoris champions. Lower borrowing costs can accelerate adoption of new technologies, spur investment in digital-security platforms, and support the build-out of resilient infrastructure.

“In short, we view this rate cut as a positive backdrop for fintech, security-tech and Web3 innovation; it gives a tailwind. But we continue to monitor underlying fundamentals closely, because sustainable adoption of advanced security architectures depends not just on stimulus but on stable growth, predictable policy, and structural productivity gains. Naoris remains committed to harnessing this environment to advance quantum-secure security, while remaining vigilant to macro policy shifts and tightening cycles down the road.”

– David Carvalho, CEO of Naoris Protocol

“The Fed’s second rate cut this year—split across two moves—wasn’t about strategy, it was about optics. Powell didn’t want to deliver a full 50 basis points in one go, but the result is the same.

“Yet, these rate cuts won’t restore prosperity to the American middle class. There’s a myth that lower rates and ‘domestic manufacturing revival’ will bring back the good times. The reality is harsher: China’s manufacturing base operates a standard deviation ahead in automation, its factories literally run in the dark because they don’t need lights for robots. That’s the future: production without people.

“What the U.S. has left is military dominance and monetary leverage. Rate cuts might buoy markets for a few months, but structurally, we’re in decline. Expect three to six months of optimism, then turbulence. When you see masked men pulling neighbors off the street, you know the cracks are already showing.”

– Dylan Dewdney, co-founder and CEO of Kuvi.ai

“The news (of) Federal Reserve rate cuts for the second time this year is another progressive move, trimming its benchmark rate to roughly 3.9%, down from about 4.1%. That’s a notable shift from the 5.3% peak reached in around 2023–2024. This should gradually ease borrowing costs, and lower rates tend to push investors toward alternative assets, including tokenized assets. With traditional yields shrinking, tokenized real-world assets, digital securities or blockchain-based funds could attract fresh capital.”

– Hedy Wang, CEO and co-founder, Block Street

“Lower borrowing costs are the rocket fuel for innovation. We’re already seeing record highs in AI-driven markets—Nvidia hitting $5 trillion in market cap isn’t coincidental. Cheaper capital accelerates the deployment of transformative technologies, from artificial intelligence to blockchain infrastructure.

“For companies building the future economy, this rate environment creates unprecedented opportunity to scale solutions that will define the next decade.

“Rate cuts historically trigger significant capital inflows into risk assets, and we’re seeing that playbook unfold again. Bitcoin’s resilience above $42,000 despite regulatory headwinds demonstrates that digital assets are maturing into a legitimate store of value.

“For innovative companies, lower rates mean increased institutional appetite for novel solutions and AI-powered agent economies. The convergence of accommodative monetary policy and breakthrough AI capabilities is creating a perfect storm for innovation as we accelerate towards a post-agentic economy.

“While Powell’s cautious tone about December’s cut reflects the challenging data environment, the trajectory is clear—we’re in an easing cycle. The question isn’t whether rates will continue falling, but at what pace. For entrepreneurs and investors, this is the time to deploy capital strategically. The companies that scale during this transition period will emerge as the infrastructure leaders of tomorrow.

“The Fed is threading the needle between supporting growth and controlling inflation. For the innovation economy—from AI to Web3—this rate environment is a green light for bold builders. Lower capital costs accelerate the transition to an agent-driven economy where individuals own their AI rather than be replaced by it.”

– Syed Hussain, founder and CEO of SHIZA

Gold’s still a good bet, no matter what some crypto fans say

“With the Fed widely expected to cut rates again today, and US-China trade tensions easing again, it’s no surprise we’re seeing a rebound in crypto markets and a sell-off in gold. But this isn’t the death knell for the safe-haven asset, because the recent gold rush hasn’t been driven by geopolitical and macro fears alone. It’s been as much about diversifying away from US dollar-denominated assets, and that trend isn’t going anywhere.

‘Gold is a real, tangible asset with a finite supply. The recent sell-off only reinforces this fact. As fiat currencies continue to suffer from devaluation due to the global shift toward easier monetary policy, real assets like gold will remain a cornerstone of diversified portfolios – even more so as the tokenization of real-world assets gathers pace.

“On the blockchain, real assets like gold become more than just a safe haven or a store of value. They become a verifiable, uncorrelated form of collateral that is more stable than digital assets or stablecoins pegged to devaluing currencies, and a way to earn yield regardless of the market environment. Over time, this will expand to other real assets, like real estate, ensuring more stability for the digital asset ecosystem and for investors’ portfolios.”

– Kevin Rusher, founder of RAAC

Mounting debt levels in major economies, including the United States and the United Kingdom, are driving a surge of investor interest in alternative assets, says the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and asset management organizations.

“Government debt in leading economies has grown to unsustainable levels. Investors can see what’s coming. When debt piles keep expanding faster than growth, the value of money is quietly diluted, and those holding conventional assets take the hit.”

The US national debt has now climbed above $38 trillion, according to the Committee for a Responsible Federal Budget, and is projected to reach about 125% of GDP by the end of 2025. In the UK, public sector net debt has risen to 96.4% of GDP, its highest level in more than six decades, while the IMF warns that global government debt could approach 100% of world GDP by 2029.

“These are not abstract figures. They represent governments borrowing from the future to fund today’s promises. The result is a slow erosion of purchasing power and a growing risk that the world’s largest economies will struggle to finance themselves without constant central-bank support.

“Traditional bonds are losing their defensive value, and cash offers no protection against currency depreciation. This is why we’ve been seeing renewed demand for tangible stores of value such as gold, silver, and increasingly, digital assets like Bitcoin. These are assets that don’t rely on governments or central banks to maintain credibility.

“When debt keeps expanding and productivity doesn’t, investors know something has to give.  They’re reallocating toward assets that can hold value if the dollar, the pound, the euro, and other traditional currencies lose purchasing power. It’s a redefinition of what safety means in a world of structural deficits.

“When the largest and most conservative investors start allocating to gold and digital assets, it’s a clear signal that this shift is strategic. They’re not chasing volatility; they’re protecting capital from fiscal dilution.

“Governments are stuck. If they keep rates high to control inflation, debt servicing becomes crushingly expensive. If they cut rates to ease the burden, they weaken their currencies and re-ignite inflation.

“This is the start of a structural shift. Investors are positioning for a future defined by scarcity and decentralization rather than by debt and dilution. Precious metals, digital currencies, and certain private assets are becoming core components of modern wealth strategies.

“Neither Washington nor Westminster has the political will to reverse debt accumulation. Voters expect high spending, and politicians deliver it with borrowed money. This is why this rebalancing toward alternative assets is an evolution.

“The smart money, including, increasingly, from institutional investors, is already diversifying into alternatives that can outlast the debt cycle.”

– Nigel Green, CEO, deVere Group