Federal Reserve Likely to Cut Rates by September

Interest rate futures indicate the Federal Reserve will not cut rates this July, with a high likelihood of a 25 basis point reduction in September. This is based on data from the Chicago Mercantile Exchange. Bitcoin and other cryptocurrencies could see significant market shifts following these developments.

The Federal Reserve’s decision-making process is taking center stage as the market anticipates interest rate changes. While the Federal Open Market Committee’s July meeting presented a divided stance among policymakers on immediate action, the September meeting promises to be pivotal with a potential 25 basis point cut anticipated. FOMC Chair Jerome Powell and other members are carefully weighing economic indicators, with most insiders agreeing on later adjustments.

Cryptocurrency Market Could Surge Post-Fed’s Anticipated Rate Cut

Market analysts are seeing this potential rate cut as a driver for enhanced risk appetite, particularly impacting cryptocurrencies. Interest in digital assets like Bitcoin and Ethereum may rise as historically correlated with dovish monetary policies. Fed rate adjustments are known to invigorate the risk-on sentiment, causing movement in crypto valuations.

Publicly, reactions have centered around speculative energy on platforms like Reddit and Discord, where the crypto community vigorously debates potential upsurges in Bitcoin and DeFi protocols. Economic experts from the CME Group estimate a less than favorable outcome for a July cut but find the September forecast promising.

“A couple members were open to a July cut, but most anticipate a cut later this year.” — Jerome Powell, Chair, Federal Reserve

Historical Context, Price Data, and Expert Analysis

Did you know? The Federal Reserve’s last major rate cut in 2020 led to a dramatic rise in Bitcoin prices, underscoring the asset’s sensitivity to monetary policies.

According to CoinMarketCap, Bitcoin’s current price is $116,888.09 with a market cap of $2.33 trillion. Despite recent volatility, including a 3.99% drop over the last 24 hours, the asset displays an impressive 39.29% increase over 90 days. As of July 15, 2025, Bitcoin maintains dominance with a 63.06% share of the crypto market.

Insights from Coincu research indicate that a September rate cut could invigorate both financial markets and cryptocurrency spaces, potentially leading to technological innovations and increased regulatory scrutiny. Historical market reactions suggest a bullish trend for cryptocurrencies post-rate cut, supported by increased capital inflow into riskier assets.