Fed Revises 2026 Rate Cut Projections to 25 Basis Points – Coincu

Amid a closely watched announcement, the Federal Reserve released revised projections indicating a reduction of the anticipated rate cut for 2026 from 50 to 25 basis points. This announcement emerged from the June meeting of the Federal Open Market Committee (FOMC). The broader implications suggest a slower approach to monetary easing over the next few years.

The Federal Reserve has revised its dot plot, with projections showing a 25 basis points rate cut for 2026, a reduction from the previously expected 50 basis points. This change aligns with a steady, moderate approach, extending rate cut projections into 2027. Planned rate actions are anticipated to involve 25 basis points reductions in both 2026 and 2027. The adjustment is expected to influence market strategies, although immediate reactions from both financial and crypto markets have been muted.

Fed Modifies 2026 and 2027 Rate Cut Expectations

The Federal Reserve has revised its dot plot, with projections showing a 25 basis points rate cut for 2026, a reduction from the previously expected 50 basis points. This change aligns with a steady, moderate approach, extending rate cut projections into 2027. Planned rate actions are anticipated to involve 25 basis points reductions in both 2026 and 2027. The adjustment is expected to influence market strategies, although immediate reactions from both financial and crypto markets have been muted.

Bitcoin (BTC) is currently valued at $104,966.11 with a market cap of 2.09 trillion, according to CoinMarketCap. BTC’s trading volume dropped by 16.07% over the past 24 hours. Its market dominance stands at 64.02%, with a circulating supply of 19,879,959 BTC. In the past 60 days, BTC price rose by 23.25%, even as it recorded a 3.22% decline over the past week.

“The Fed’s decision to keep the federal funds rate unchanged is a ‘dovish hold that keeps the door open to rate cuts in the second half of 2025’… The FOMC is indicating it is not in a rush, ‘but is prepared to act if inflation continues to ease and labor market softness deepens.’” — Dan Siluk, Head of Global Short Duration & Liquidity at Janus Henderson Investors

Bitcoin and Crypto Response to Fed’s Dovish Hold

Did you know? The last major Federal Reserve “dovish hold” in a similar cycle occurred during 2019-2020 when risk assets, including BTC, showed notable appreciation. This historical context reflects the potential significant market reactions linked to more accommodative monetary policies.

Crypto analysts at Coincu indicate that changes in U.S. monetary policy adjustments like these often influence global risk appetite. These adjustments may eventually create ripples across major cryptocurrencies and financial markets. The research notes that the Federal Reserve has signaled caution, suggesting a preparedness to act with flexibility.

Crypto analysts at Coincu indicate that changes in U.S. monetary policy adjustments like these often influence global risk appetite. These adjustments may eventually create ripples across major cryptocurrencies and financial markets. The research notes that the Federal Reserve has signaled caution, suggesting a preparedness to act with flexibility.