Experts anticipate the Federal Reserve will cut interest rates by 50 basis points in September, driven by weak labor market data. This prediction comes despite the lack of official confirmation from key stakeholders, leading to discussions among analysts about a potential larger-scale easing strategy. The possibility is already influencing markets, particularly those involved in Bitcoin and Ethereum, as investors anticipate shifts in monetary policy impacting both traditional and cryptocurrency sectors.
Standard Chartered Bank predicts a 50 basis point cut by the Federal Reserve in September 2025, exceeding an earlier expectation of 25 basis points based on data released last month. This has led to increased market speculation and expectations for significant easing measures. While the market has largely priced in this rate cut (with a probability exceeding 100%), debate continues regarding the exact size of the move.
A history of similar Fed actions, such as those implemented in 2020, has shown how these cuts often lead to strong price responses in risk assets including Bitcoin and Ethereum, demonstrating their impact on markets.
The crypto market remains highly sensitive to economic shifts. A potential rate cut by the Federal Reserve could have a substantial impact on cryptocurrency markets, especially Bitcoin (BTC) and Ethereum.
Did you know? In March 2020, significant rate cuts by the Federal Reserve resulted in a dramatic recovery of risk assets such as Bitcoin and Ethereum, demonstrating how larger-scale easing measures can significantly influence market performance.
Data suggests that a potential rate cut could lead to economic downturns. However, the cryptocurrency sector is prepared for this possibility as historical precedents have shown its impact on financial conditions and trading volumes, particularly in volatile sectors like crypto.