According to traders' expectations, the U.S. Federal Reserve may begin to cut interest rates in September 2025, which could positively impact the cryptocurrency market.
Federal Reserve Rate Cut Probabilities
On June 27, 2025, traders significantly increased bets that the Federal Reserve would start cutting interest rates in September. According to BlockBeats, the probability of this event reached 71%, which is significantly higher than the previous week's levels. Officials like Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, suggest two rate cuts in 2025, including September and likely December.
Historical Data and BTC/ETH Dynamics
It is known that rate cuts during past cycles, such as 2020 and 2019, have led to notable rallies in Bitcoin and Ethereum prices, reflecting an increased appetite for risk among investors. At the time of reporting, Bitcoin (BTC) is priced at $106,822.84, down 0.43% over the past 24 hours, with a market cap of $2.12 trillion.
Investment Prospects in DeFi
The Coincu research team projects that rate cuts can bolster investor confidence in cryptocurrencies, potentially driving technological investments in DeFi protocols and related sectors. Historical trends suggest that interest in digital assets grows during phases of monetary easing.
Overall, the Federal Reserve's expected rate cuts are likely to positively impact the cryptocurrency market, fostering increased investor activity and volumes.
