Fed rate Cut 2025: Impact on Bitcoin and Equities
The Fed is expected to announce its first interest rate cut of 2025 this week. Most predict a modest 25 basis points reduction, aiming to boost sluggish job growth and cool housing momentum.
With Bitcoin at $116,500 and Ethereum near $4,500, crypto markets areOptimism surrounds the upcoming Federal Reserve meeting, were a 25 basis point interest rate cut is highly anticipated. This shift comes amid weak August job numbers and softened housing trends. Bitcoin and Ethereum have climbed in anticipation, but historical data suggests caution for September.
- Bitcoin trades close to $116,500
- Ethereum nears $4,500
B TC suggests caution for September.
Balances on exchanges have decreased, indicating holders are moving assets off these platforms. Meanwhile, Bitcoin and Ethereum ETFs have seen considerable inflows, attracting institutional interest.
September historically brings weakness for equities and crypto. Bitcoin averages a monthly decline of over 3%, with S&P 500 and Nasdaq showing lower performance too. tariffs and inflation add to ongoing uncertainties.
Investor views are mixed. Anthony Pompliano claims the bull market has room to grow, pointing to strong underlying indicators. However, some analysts like Ted warn of potential short-term market corrections due to seasonal factors like the triple witching expiry.
As we await the Fed’s stance, the crypto market’s trajectory depends on the accompanying guidance. While structural inflows suggest sustained growth, investors should be prepared for near-term volatility.
