- Fed’s Bowman advocates for rate cuts to address labor market fragility.
- U.S. rates reduced to 4.00%–4.25% in September 2025.
- Crypto markets may see shifts as Fed policy impacts risk assets.
Federal Reserve Governor Michelle Bowman has advocated for immediate interest rate cuts, last acting in September 2025, amid concerns over labor market weaknesses and decreasing inflationary pressures.
The call for rate cuts highlights possible economic stress, potentially impacting crypto markets positively by fostering capital inflows into Bitcoin, Ethereum, and DeFi as risk assets regain appeal.
Fed’s 25 Basis Point Cut Sparks Market Speculation
The Federal Reserve implemented a 25 bps rate cut in September 2025, marking its first reduction since December. Governor Michelle Bowman, previously known for a hawkish view, advocated for further rate cuts by year-end, citing labor market fragility and easing inflation risks. Governor Stephen Miran favored a more significant 50bps cut but was outvoted. The Fed’s decision aims to alleviate economic pressures, particularly in the labor market. The rate reduction aligns with Bowman’s recommendation for action, reflecting concern over potential layoffs if demand remains weak. Market observers anticipate that these changes may encourage risk asset inflows, affecting cryptocurrency valuations. While the broader crypto impacts are still evolving, BTC and ETH have historically reacted positively to rate cuts, with expectations for additional 50bps reduction this year.
According to CoinMarketCap, Bitcoin (BTC) is currently priced at $112,952.01, with a market cap of 2.25 trillion and holding a market dominance of 57.64%. Trading volume saw a 8.36% decrease, but the 90-day price rose 4.93%. Circulating supply remains 19,925,062 BTC, against a maximum supply of 21,000,000.
Potential outcomes from Coincu research highlight increased financial inflows to crypto markets in reaction to the Fed’s rate cut strategy. Historical trends suggest bullish signals for BTC and DeFi governance tokens, though regulatory adjustments may surface. Crypto investors are advised to monitor further policy changes closely.
Bitcoin Prices Surge amid Anticipated Policy Changes
Did you know? In previous cycles, such as 2019-2020, Federal Reserve rate reductions preceding a bull phase in BTC and ETH often resulted in significant DeFi total value locked (TVL) spikes. Market dynamics in 2025 could mirror these historical patterns, enhancing investor anticipation.
According to CoinMarketCap, Bitcoin (BTC) is currently priced at $112,952.01, with a market cap of 2.25 trillion and holding a market dominance of 57.64%. Trading volume saw a 8.36% decrease, but the 90-day price rose 4.93%. Circulating supply remains 19,925,062 BTC, against a maximum supply of 21,000,000.
Potential outcomes from Coincu research highlight increased financial inflows to crypto markets in reaction to the Fed’s rate cut strategy. Historical trends suggest bullish signals for BTC and DeFi governance tokens, though regulatory adjustments may surface. Crypto investors are advised to monitor further policy changes closely.
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Source: https://coincu.com/markets/fed-cuts-rates-labor-inflation/