Fed Rate Cut Expectations Surge: Impacts on Crypto Markets

CME’s FedWatch Tool reveals a shift in economic expectations, with an 84.6% probability of a 25 basis point rate cut by the Federal Reserve in September.

Anticipated rate cuts signal potential market shifts, impacting cryptocurrencies like ETH and BTC, evidenced by sharp price movements and heightened trading activity.

Fed Rate Cut Probabilities Surge to 84.6%

CME’s FedWatch Tool shows a substantial increase in the probability of U.S. Fed rate cuts, indicating a major economic policy shift. Last recorded rates showed a 15.4% probability for September to remain steady, reducing significantly by October. Immediate consequences include volatile movements in key crypto assets. BNB surged to an all-time high, demonstrating sensitivity to these macro changes. Market participants exhibit cautious optimism; no KOLs have commented on the probability figures. Market analysts anticipate further price volatility as new Fed positions emerge.

“The sharp increase in expectations for U.S. Federal Reserve rate cuts in September and October indicates substantial anticipated shifts in macroeconomic conditions impacting crypto markets.” [CME Group](https://www.theblockbeats.info/en/news/59325)

“The sharp increase in expectations for U.S. Federal Reserve rate cuts in September and October indicates substantial anticipated shifts in macroeconomic conditions impacting crypto markets.” [CME Group](https://www.theblockbeats.info/en/news/59325)

Crypto Markets Rally with BNB at New All-Time High

Did you know? Fed rate expectations have historically led to significant price surges in crypto. Previous dovish signals saw BTC and ETH rally by over 10% within days.

As of August 18, 2025, BNB trades at $856.27, with a market cap of $119.27 billion and a 24-hour trading volume increase of 16.81%, according to CoinMarketCap. BNB’s price appreciated by 32.78% over the past 60 days, reflecting substantial market shifts.

Insights from Coincu highlight that potential Fed policy adjustments may drive increased liquidity in crypto markets. Historical trends suggest crypto assets tend to react positively to dovish shifts, aligning with a broader risk-on sentiment observed during previous easing cycles.