The Federal Reserve has indicated a potential interest rate cut in September, with specific interest from Governor Christopher J. Waller for a 25 basis-point reduction. This move is driven by recent labor market data and inflation concerns, as both factors could influence the direction of the crypto markets like Bitcoin (BTC) and Ethereum (ETH). While the Fed’s actions may impact financial assets, their potential to stimulate risk-on sentiment among investors and shift capital toward higher growth sectors remains a significant factor. 25 basis-point rate cuts are anticipated to ease monetary policy, possibly leading to shifts in investment preferences away from USD assets towards alternative options like Bitcoin. Analysts believe this could create an opportunity for investors to potentially increase their exposure to cryptocurrencies.