Goldman Sachs Pushes Fed Rate Cut Forecast to December 2025 – Coincu

Goldman Sachs has adjusted the timing for the anticipated Federal Reserve rate cut to December 2025, diverging from an earlier prediction for July. This adjustment follows strong employment data and potential macroeconomic shifts.

The forecast shift by Goldman Sachs suggests significant implications for both financial markets and the cryptocurrency sector. Market participants anticipate changes in asset pricing and investor sentiment, with particular attention on BTC and ETH sensitivity to US rate policies.

Goldman Sachs Extends Fed Rate Cut Expectation to Q4 2025

Goldman Sachs, a major US financial player, has revised its Federal Reserve rate cut projection, now anticipating the next cut in December instead of July. This change comes amid a landscape of easier financial conditions and macroeconomic recalculations. The expected rate cut delay aligns with improved employment statistics and an updated growth outlook. Goldman Sachs analysts have increased the US 2025 fourth-quarter GDP growth estimate by 0.5 percentage points. They also predict a 3.6% peak in core personal consumption expenditure inflation, fostering better economic prospects.

Market sentiment has shifted with these adjustments. Notable individual insights come from Raoul Pal, CEO of Real Vision, paraphrasing that the expected pause and potential cut may catalyze risk asset rotations, prominently including cryptocurrencies. Community sentiment across social platforms reflects cautious optimism, pending definitive Fed actions.

“The pause, and more so, the eventual first cut, will trigger a huge rotation into risk assets. Crypto will move fast and hard once the Fed signals—it’s about the liquidity, stupid.” – Raoul Pal, CEO, Real Vision

Crypto Response: BTC and ETH Under Rate Pressure

Did you know? In past instances where the Fed delayed cuts, similar to 2019, BTC and ETH experienced notable short-term volatility, underscoring the close relationship between macroeconomic policy shifts and crypto market dynamics.

Bitcoin’s current data: trading at $102,929.11 with a market cap of $2.04 trillion, according to CoinMarketCap. Despite a 1.07% decline over 24 hours, Bitcoin saw growth of 8.56% in seven days, and a broader upward trend with a 30-day increase of 20.62%. Trading volume reached $64.05 billion, clearly impacting market engagement and investor strategies.

Insights from the Coincu research team emphasize the potential ripple effects on technological sectors and crypto product innovations. Delayed monetary easing creates interim pressure but historically catalyzes post-adjustment asset influxes. Such contexts illustrate opportunities for strategic positioning in risk-on environments.