Federal Reserve rate cuts crypto: Jerome Powell’s August 2025 signals that the Fed may cut interest rates if growth softens, a move likely to increase flows into Bitcoin and Ethereum as investors seek higher-yield risk assets and lower borrowing costs boost crypto liquidity and trading volumes.
Powell’s comments could trigger sizable inflows into BTC and ETH.
Short-term market response: rising futures open interest and higher ETH trading volumes.
Historical precedent: a ~25% BTC surge followed prior Fed easing in 2019 (market data).
Federal Reserve rate cuts crypto: Monitor Powell’s signals—read analysis and market actions now. (150-160 characters)
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Federal Reserve rate cuts crypto signals indicate that easing policy could lower borrowing costs and push institutional and retail capital toward risk assets like Bitcoin and Ethereum. Market participants typically respond with higher trading volumes and increased futures positioning when rate-cut probability rises.
Lower rates reduce the opportunity cost of holding non-yielding assets, historically supporting crypto rallies. Market data from previous easing cycles shows notable BTC gains (about 25% after the 2019 cuts). Spot and derivatives volumes often increase as traders reposition for risk-on flows.
Immediate reaction included a spike in Bitcoin futures open interest and rising ETH/USD trading volumes on major exchanges. Short-term volatility increased as traders priced a higher likelihood of cuts. These moves reflect classic cross-asset responses to changing monetary policy expectations.
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Source: https://en.coinotag.com/powell-signals-possible-fed-rate-cuts-that-could-drive-flows-into-btc-and-eth/