J.P. Morgan analysts are projecting economic changes that could affect the cryptocurrency market. Interest rate cuts by the Federal Reserve are expected in 2025.
Forecasts for Rate Reductions
J.P. Morgan Global Research anticipates that the Federal Reserve will cut interest rates by 25 basis points in September 2025, impacting major cryptocurrencies like BTC and ETH.
Impact on the Cryptocurrency Market
Rate cuts may enhance institutional investors' interest in risk assets such as Bitcoin and Ethereum. It is expected that these reductions will improve liquidity and lower yields on alternatives to fiat currency.
Historical Analogies
Historical precedents suggest that rate cuts lead to increased trading volumes in cryptocurrency markets, as seen in 2019 and 2023. "If labor markets remain solid, the FOMC may prefer to wait and see... However, the weakness in job growth is significant enough to justify rate cuts," stated Michael Feroli, Chief U.S. Economist at J.P. Morgan.
J.P. Morgan's forecasts regarding interest rate changes could significantly affect cryptocurrency market dynamics, providing a new impetus for growth.
