Traders are anticipating the Federal Reserve (Fed) will cut interest rates in September and potentially again in October. This anticipation is leading to increased activity in both traditional and cryptocurrency markets, with potential for market volatility. The likelihood of a 25 basis point rate reduction by the Fed in September has climbed significantly according to CME FedWatch, reaching 90%. Market experts, including CITIC Securities, predict similar rate cuts in October and December. This shift could benefit risk assets like cryptocurrencies, potentially leading to increased investor confidence and trading activity, particularly in volatile asset classes. For example, Ethereum’s price has recently surpassed $4,300, with trading volume surging on exchanges. Historical trends suggest that previous rate cuts by the Fed have historically fueled rallies in both Bitcoin and Ethereum. As such, analysts anticipate a surge in investment into digital assets during periods of lower interest rates. However, Coincu Research team cautions that this anticipated shift may result in increased market volatility, prompting crypto holders to adjust strategies accordingly.