Federal Reserve Chair Jerome Powell hinted at a potential rate cut in the near future, which could have a noticeable impact on financial markets.
Signals from the Fed about Rate Cuts
Jerome Powell indicated that a rate cut is on the horizon due to a weakening labor market. This statement comes ahead of the upcoming FOMC meeting scheduled for September 16-17, 2025. Despite inflation remaining above 2% for 53 consecutive months, experts believe that changes in monetary policy could affect investment strategies.
Impact on Bitcoin Prices
Historically, shifts in Fed monetary policy, such as those in March 2020, led to significant inflows into cryptocurrencies like Bitcoin and Ethereum. As of August 24, 2025, Bitcoin's price stands at $115,106.02, with a market cap of $2,291,838,544,445.10. Over the past 90 days, Bitcoin's price has increased by 5.06%, while the 24-hour trading volume has dropped by 37.62%.
Markets and Investor Expectations
There are expectations that impending rate changes might drive investments into digital assets. Historical data suggests that reduced rates could boost trading volumes in cryptocurrencies, stimulating market activity.
The signals regarding potential rate cuts from the Fed are becoming an important topic of discussion among investors. This could lead to changes in investment preferences and market activity, especially in sectors related to cryptocurrencies.
