Federal Reserve’s Potential Rate Cut Signals Impact on Cryptocurrencies

3 mins mins

Key Points:

The Federal Reserve may announce a rate cut impacting global markets.
Bitcoin and Ethereum prices are closely monitored.
Analysts watch for impacts on risk assets and liquidity.

The Federal Reserve is expected to announce a third 25 basis points rate cut on Wednesday, potentially marking the final easing move for 2025 amid internal committee debates.

This anticipated rate cut could weaken the US dollar, influencing Bitcoin and Ethereum markets by impacting risk-on strategies and real yield calculations across crypto-assets.

Federal Rate Cut: Third 25-Basis Points Move for 2025?

The U.S. Federal Reserve is expected to announce its third 25 basis points rate cut for 2025, potentially altering the financial landscape significantly. Jerome Powell’s press conference will provide crucial insights into future monetary policy paths. Deutsche Bank’s analysts have predicted, “The Fed may deliver its third and final 25 basis points rate cut of 2025” and expect “non-unanimous support for that decision.” – BlockBeats. This announcement comes amidst Fed discussions over inflation management and economic recovery.

Market reactions are highly anticipated, with Bitcoin and Ethereum prices likely to respond. Analysts view a weaker U.S. dollar and lower rates as supportive for risk-on assets like cryptocurrencies. A non-unanimous decision could indicate internal debate, influencing investor sentiment and market volatility.

Bitcoin (BTC) trades at $91,917.46, with a market cap of $1.83 trillion according to CoinMarketCap. BTC dominates 58.80% of the market. Its trading volume reached $54.56 billion, a 55.07% increase in 24 hours. Prices increased by 2.89% over the same period. However, BTC experienced declines over 60 and 90 days by 24.33% and 18.62%, respectively.

The Coincu research team suggests that if the rate cut occurs, cryptocurrencies could see enhanced growth, particularly in DeFi and staking sectors. Historical trends point to increased liquidity stimulating market activity, potentially boosting tokens like BTC under favorable monetary conditions.

Crypto Boost? Bitcoin and Ethereum’s Prospects Amid Rate Changes

Did you know? The Federal Reserve’s decisions on interest rates can have profound effects on cryptocurrency markets, often leading to increased volatility and trading activity.

bitcoin-daily-chart-4842 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 09:02 UTC on December 8, 2025. *Source: CoinMarketCap*

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