- JPMorgan strategists foresee limited immediate stock gains post-Fed rate cuts.
- Medium-term outlook remains positive due to dovish policies.
- US oil prices and wage growth declines expected to ease inflation pressures.
JPMorgan strategists foresee a potential stall in the stock market rally due to expected Federal Reserve rate cuts prompting profit-taking urges among investors.
The dovish Federal Reserve stance supports a medium-term bullish outlook, yet immediate equity gains may be limited, affecting broader risk assets such as BTC and ETH.
Impact of Fed Rate Cuts on Stock and Crypto Markets
JPMorgan strategists indicated that the Federal Reserve’s rate cuts are expected to influence market conditions. Policymakers’ dovish stance has supported stocks, yet a slowdown may occur as investors take profits.
The rate cuts by the Fed aim to support the economy amid low inflation and declining wage pressures. This dovish direction can boost medium-term market growth, but near-term stock increases may be limited.
Market reactions to these developments vary. Chair Jerome Powell has highlighted the importance of data-dependent decisions. Michael Feroli of JPMorgan reinforced expectations for continued rate reductions, signaling benefits for equities.
Historical Policy Effects on Bitcoin and Asset Performance
Did you know? Historically, dovish Federal Reserve policies have often resulted in increased risk asset performance, especially for cryptocurrencies like Bitcoin, which are sensitive to changes in liquidity and interest rates.
Bitcoin (BTC) holds a market dominance of 58.63%, priced at $91,932.43 as of December 8, 2025. The market cap stands at $1.83 trillion. Recent fluctuations show a 3.04% increase over 24 hours, while the 90-day trend reflects a decline of 18.64%, according to CoinMarketCap.
Coincu researchers anticipate that federal rate adjustments may enhance crypto liquidity, influencing Bitcoin and altcoin performance. Analysis shows a potential rebound in cryptocurrency valuations if the easing policy sustains growth amidst low inflation.
Michael Feroli, Chief U.S. Economist, J.P. Morgan, stated, “We think a major shift in labor market momentum would be needed to prevent another cut in October.” Source: J.P. Morgan
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Source: https://coincu.com/markets/jpmorgan-stock-gains-fed-rate-cuts/