San Francisco Fed President Mary Daly has proposed a measured approach to monetary policy this year, advocating for gradual interest rate cuts in 2025. Her suggestion differs from the expected large cut at the upcoming Federal Reserve meeting, which could impact cryptocurrency markets. Daly’s proposal, grounded in careful analysis of labor market conditions and economic indicators, anticipates increased activity within Bitcoin and Ethereum. The reasoning behind this approach is to avoid potentially destabilizing economic shifts. The CME FedWatch Tool shows a 96% probability of a quarter-point rate cut, reflecting the growing consensus among investors. This move could be significant for crypto markets, as historically similar scenarios have resulted in market rallies, especially those influenced by increased liquidity and yield expectations. Daly’s suggestion aligns with long-term economic goals, focusing on minimizing sudden disruptions to the financial system. Cryptocurrency investors closely track such decisions, particularly in relation to DeFi protocols and stablecoins that adapt their strategies based on evolving market conditions.