Limited Fed Rate Cuts Predicted by 2026, Report Finds

BlackRock strategists Amanda Lynam and Dominique Bly predict limited Federal Reserve rate cuts in 2026, aligned with reaching neutral rates, according to their December 18, 2025 report.

This forecast could affect yield-sensitive assets like Bitcoin and Ethereum amid credit market shifts, despite no direct cryptocurrency market reaction confirmed.

BlackRock’s Prediction on Fed Rate Cuts

BlackRock strategists Amanda Lynam and Dominique Bly released a report noting that the Fed has cut rates by 175 basis points. This action points towards the neutral rate zone, indicating limited cuts unless the labor market deteriorates significantly. Amanda Lynam, Strategist, BlackRock, mentioned:

Rate adjustments have influenced credit and financial markets, with potential implications for yield-sensitive assets. The strategists indicate that further reductions might be restricted due to the neutral rate proximity and economic conditions. For more insights on this, you can refer to the rise of private credit and its implications.

“With 175bp of cuts delivered by the Federal Reserve since September 2024, the Fed Funds rate (3.5-3.75%) is already approaching some estimates of neutral.”

Bitcoin’s Position Amidst Fed’s Limited Rate Cut Outlook

Did you know? The Federal Reserve’s rate cut trajectory often influences cryptocurrency market volatility, showing significant price fluctuations during economic policy shifts.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $87,264.39 with a market cap of $1.74 trillion, holding a 59.10% market dominance. The 24-hour trading volume fell by 25.57% to $31.72 billion. Bitcoin’s price changed by -0.52% over 24 hours and -21.95% over 60 days.

The Coincu research team suggests that limited interest rate cuts could stiffen financial conditions and tighten liquidity, possibly resulting in fluctuations across credit markets. Historical analysis highlights these economic shifts’ potential to amplify market volatility in various blockchain-driven financial instruments.