FedWatch Predicts 87% Probability of Fed Rate Cut

According to CME’s FedWatch data, the Federal Reserve is predicted to cut interest rates by 25 basis points in September 2025, with an 87.3% probability.

This potential rate cut could influence cryptocurrency markets, particularly Ethereum and Aave, as investors seek higher returns amid shifting economic conditions.

Market Reactions and Strategic Buys

Market reactions have been varied. Some institutional investors, particularly those within the cryptocurrency sector, have increased their ETH holdings significantly. According to official filings, entities such as BitMine continue to bolster their ETH portfolios.

The potential rate cut could result in increased liquidity, fostering greater investment into higher-risk areas like cryptocurrencies. BitMine’s filings note substantial ETH purchases—approximately 190,500 ETH—aligning with these shifting expectations. This suggests growing confidence in digital assets as viable investments amidst economic uncertainty.

We are continuously buying a large amount of ETH, and we are the leader in institutional holdings growth. — Michael Saylor, Chairman, BitMine

Ethereum Gains Momentum Amid Economic Policy Changes

Did you know?
Historical periods of monetary easing by the Federal Reserve often result in noticeable spikes in crypto markets, as seen in March 2020, when swift rate cuts empowered significant rebounds in digital asset prices and activity.

Ethereum (ETH) trades at $4,529.22 with a market cap of $546.71 billion, according to CoinMarketCap. ETH has experienced a 2.29% decrease in the past 24 hours. Over the last 60 days, there’s been an 85.34% uptick in ETH’s price, showcasing robust demand amidst current economic conditions.

Analysts at Coincu highlight potential outcomes from rate cuts, suggesting that while regulatory reactions remain uncertain, the consistent pattern of liquidity support typically bolsters crypto market activity, particularly in Ethereum and other high-impact tokens. Historical data continues to underline the positive correlation between rate adjustments and digital asset performance.