Federal Reserve’s Rate Cut to Influence Crypto Markets

The Federal Reserve is anticipated to cut interest rates on September 17, impacting major cryptocurrencies like Bitcoin and Ethereum, as guided by Chair Jerome Powell’s August indications.

This expected rate cut could spark significant volatility and bullish momentum in the crypto market, influenced by increased liquidity and institutional interest.

Federal Reserve Eases Under Powell: September Meeting Insights

Federal Reserve’s leadership under Jerome Powell has hinted at policy easing, expected at the September 17 meeting. Industry leaders like Kris Marszalek, CEO of Crypto.com, suggest noticeable effects on crypto valuations, foreseeing Q4 2025 as a pivotal period.

Powell’s August 22 speech suggested an imminent rate cut, captured in market expectations. Kris Marszalek emphasizes past trends, stating how liquidity expansion typically benefits risk assets, including crypto.

Kris Marszalek, CEO, Crypto.com, – “Every time the Fed eases, crypto markets feel the impact almost instantly. We’ve seen this before, and I believe Q4 2025 will be no different.”

Volatility and Bullish Predictions Post Rate-Cut

Financial markets anticipate increased volatility in Bitcoin and Ethereum values post-rate cut. Industry experts predict strong bullish momentum fueled by the expected policy change, leading to higher cryptocurrency valuations.

Increased liquidity and ETF inflows are projected to significantly bolster the crypto market. Enhanced liquidity predictably attracts more institutional investments, potentially driving Bitcoin to highs of $70,000 by year-end.

Federal Rate Cuts and Cryptocurrency Surge Correlation

Past Federal Reserve rate cuts have shown direct correlations with crypto surges, evidenced by a 57% market increase in late 2024. SEC and CFTC Staff Issue Joint Statement on Trading Certain Spot Crypto Asset Products Similarly, significant token unlocks in September 2025 may initially decrease prices before a recovery, matching historical patterns.

Expert forecasts highlight the potential for substantial ETH and BTC gains by Q4 2025. This scenario aligns with historical trends, where easing policies have repeatedly catalyzed positive market shifts.

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Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.