The probability of a Federal Reserve rate cut in September 2025 has reached 99% amid weakening labor market signals. This anticipates potential changes in the financial markets, including digital assets.
Probability of Fed Rate Cuts
According to current data, the probability of a Federal Reserve rate cut in September 2025 has risen to 99%. This expectation has formed against the backdrop of weak labor data and insights from leading financial institutions. Fed Chair Jerome Powell is set to address the public on September 17.
Impact on Cryptocurrency Market
Potential rate cuts could have immediate effects on financial markets, fostering price rallies in major cryptocurrencies such as Bitcoin and Ethereum. Analysts suggest this may also lead to increased activity in the DeFi sector as investment conditions become more favorable.
Historical Precedents and Forecasts
Historical patterns indicate that Fed rate changes often lead to increased interest in cryptocurrencies. Given the current situation, traders anticipate a boost in liquidity and risk asset expenditure, likely propelling prices for BTC, ETH, and DeFi assets. 'We now project at least two 25bp cuts in 2025, starting in September,' stated Goldman Sachs.
Expectations for rate cuts by the Fed create conditions for heightened interest in digital assets, anticipated by traders and analysts. Economic conditions are likely to stimulate growth in the crypto sector, as seen in previous instances.
