Bitcoin News Today: U.S. Fed Likely to Cut Rates in September 2025 as Market Odds Hit 99.8 Percent

The U.S. Federal Reserve is on the verge of cutting interest rates at its September 2025 meeting, with the probability of a rate cut now standing at 99.8% according to the CME Group’s FedWatch Tool [3]. This near-certainty reflects a significant shift in market expectations and signals that traders and analysts are almost entirely confident in a policy easing move. The high probability of a rate cut has already started to influence investor behavior, with markets adjusting positions in anticipation of the expected action [1].

The move comes in response to recent economic data showing signs that inflation is under better control. Key indicators, including declining consumer price index (CPI) figures and a slowdown in wage growth, have provided policymakers with the flexibility to consider reducing the federal funds rate [3]. Analysts have pointed out that the economic conditions increasingly support a rate cut, especially as the labor market shows signs of cooling and price pressures continue to ease [5].

The anticipated rate cut is expected to lower borrowing costs for both businesses and consumers, potentially stimulating demand and encouraging investment in risk assets. The positive market reaction has already been evident in equities and digital assets, with increased liquidity and investor confidence fueling optimism across various sectors [1]. In particular, the crypto market has shown a favorable response, as historically, lower interest rates tend to benefit high-risk assets such as Bitcoin and Ethereum [3].

Traders are positioning themselves ahead of the Federal Reserve’s upcoming meeting, with many expecting a broader bull run in risk-on assets if the central bank follows through with the anticipated cut. The decision is being closely watched by global markets as it may signal a turning point in U.S. monetary policy for 2025, and could influence capital flows into growth sectors such as decentralized finance (DeFi), altcoins, and Web3 projects [3].

While the Federal Reserve has not yet officially confirmed the timing or magnitude of the rate cut, the overwhelming consensus among market participants suggests a near-unanimous expectation for action. The CME Group’s FedWatch Tool remains a key reference for tracking these expectations, with the 99.8% probability marking a sharp increase from earlier forecasts [3]. As the central bank prepares to ease its stance, the financial world is bracing for the potential ripple effects across global markets, with a September rate cut potentially spurring renewed investment activity and influencing borrowing costs for consumers and businesses alike [1].

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Source:

[1] Naomi on X - https://x.com/Naomi1723496642/status/1955656220972630234

[3] Bitcoin News Today: Institutional Buying on Coinbase Spikes 75%, Fed Rate Cut Speculation - https://www.ainvest.com/news/bitcoin-news-today-institutional-buying-coinbase-spikes-75-fed-rate-cut-speculation-2508/

[5] 3 Millionaire-Maker Quantum Computing Stocks - https://www.aol.com/3-millionaire-maker-quantum-computing-091500195.html