Federal Reserve Hints at Potential Rate Cuts in 2025: Impact on Crypto Markets

The Federal Reserve has indicated a possible path for rate adjustments, signaling the possibility of two rate cuts in 2025, each quarter-point reduction. This move, depending on economic data and market conditions, could impact both Bitcoin and Ethereum markets. Experts believe this potential policy change, if enacted, could increase liquidity, leading to increased institutional investment and potential asset appreciation for cryptocurrencies like Bitcoin and Ethereum. The FOMC’s official statement highlights the possibility of a 25-basis-point reduction in interest rates. Chair Jerome Powell, during his recent remarks, emphasized data dependency when considering future adjustments to the federal funds rate. The decision on whether these cuts will be implemented is contingent on internal agreements within the FOMC. Stephen I. Miran expressed dissent over the proposed rate cut size, advocating for a larger adjustment based on the FOMC calendar of meetings and events.