Goldman Sachs has adjusted its forecast for the Federal Reserve rate cut, now anticipating it in December 2025.
Goldman Sachs' Fed Rate Expectations
Goldman Sachs has revised its expectations for the Fed rate cut to December 2025, changing it from the previously anticipated July date. This adjustment is linked to improved employment data and potential macroeconomic changes.
Market Sentiment Shifts
With the new forecasts from Goldman Sachs, market sentiments have shifted. The bank has increased its US GDP growth forecast for Q4 2025 by 0.5 percentage points. The market is anticipating changes in asset pricing and investor sentiment.
Impact on Cryptocurrencies BTC and ETH
Historically, during periods when the Fed delayed cuts, cryptocurrencies like BTC and ETH experienced notable short-term volatility. As of now, Bitcoin is trading at $102,929.11 with a market cap of $2.04 trillion. Despite a 1.07% decline over 24 hours, BTC has shown an 8.56% growth over seven days.
The changes in Goldman Sachs' Fed rate expectations could significantly impact financial markets and the cryptocurrency sector, shifting investor sentiment.