- Traders anticipate several U.S. Federal Reserve rate cuts starting September.
- Potential positive momentum for BTC through monetary easing.
- The expectation of increased capital flows into risk assets like cryptocurrencies.
On June 27, 2025, traders significantly increased bets that the U.S. Federal Reserve might reduce interest rates starting September 2025, potentially leading to three cuts by 2025’s end.
This event holds importance as reduced interest rates generally lead to easier financial conditions, often triggering investor interest in higher-risk assets like cryptocurrencies.
Fed Rate Probabilities Increase to 71%, Impacting Crypto
BlockBeats News reports that traders anticipate the Federal Reserve to commence interest rate cuts starting September, with a 71% probability, significantly higher than last week. Officials like Neel Kashkari suggest two rate reductions in 2025. As Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated, “expects at least two cuts by the end of 2025—September and likely December.“
Investor expectations are primarily set on macroeconomic changes, envisioning positive outcomes for digital currencies. History shows favorable borrowing conditions enhance capital movement into risk assets.
Market reactions have been swift, as traders anticipate reduced borrowing costs that drive momentum in various markets. Kashkari’s insights contribute to shaping trader sentiment, with widespread speculation affecting the decision-making process.
BTC and ETH Historically Rally, Defi Investment Insight
Did you know? Rate cuts during past cycles, such as 2020 and 2019, have led to notable rallies in Bitcoin and Ethereum, reflecting increased investor risk appetite.
According to CoinMarketCap, Bitcoin (BTC) is priced at $106,822.84, with a decrease of 0.43% over the past 24 hours. The market cap stands at 2.12 trillion, while trading volume witnessed a decline of 12.99%. The last update to this data was at 12:50 UTC on June 27, 2025.
Coincu research team projects that rate cuts can bolster investor confidence in cryptocurrencies, potentially driving technological investments in DeFi protocols and related sectors. Historical trends suggest increased interest in digital assets during phases of monetary easing.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/345529-federal-reserve-rate-cuts-2025-impact/