Federal Reserve Prepares for Rate Cut, Impacting Crypto Market

The Federal Reserve is expected to cut interest rates in September, anticipating a weakening U.S. labor market. This move might benefit cryptocurrencies like Bitcoin and Ethereum, as investors shift towards riskier assets during periods of economic uncertainty. analysts at Mizuho Bank predict a 25 basis point rate cut, but a potential 50 basis point reduction could happen if inflation data weakens further. The anticipated cuts have led to nearly 100% certainty of an easing from the CME FedWatch tool.