Goldman Sachs Adjusts Fed Rate Cut Expectation to September

Marc Giannoni from Goldman Sachs announced on July 1, 2025, that the expected Federal Reserve rate cut has been moved to September from December.

The shifted forecast impacts cryptocurrency markets, affecting digital asset volatility and liquidity preferences amid macroeconomic uncertainties.

Goldman Sachs Revises Fed Rate Cut to September 2025

Goldman Sachs, led by Chief US Economist Marc Giannoni, recently announced a revision in its anticipated Federal Reserve rate cut timeline. The original expectation of a December cut was adjusted to September, following updates from the Federal Reserve report and increased macroeconomic activity.

Immediate market implications include heightened volatility in risk-sensitive assets like Bitcoin and Ethereum, as both display strong dependencies on broad economic shifts. Prolonged high interest rates typically limit risk-on investments within the cryptocurrency sector.

Following strong non-farm payroll data, we now see a July rate cut as the base case. Additional labor market data and clarity on tariffs and fiscal policy remain key factors. – Marc Giannoni, Chief US Economist, Goldman Sachs

Cryptocurrency Volatility Expected Amid Fed Policy Changes

Did you know? The anticipation of interest rate changes has historically led to increased short-term volatility in key cryptocurrencies, impacting trade volumes and liquidity within decentralized finance ecosystems.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $107,612.10, with a market cap of 2.14 trillion. BTC experienced a slight 0.13% uptick over 24 hours and a 26.39% increase over the last 90 days. Market dynamics remain closely monitored.

The Coincu research team suggests that prolonged uncertainty in interest rates impacts Bitcoin and DeFi token demand, affecting liquidity. Such economic projections underscore the need for adjusted investment strategies addressing macro shifts and rate dependencies.