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The U.S. Federal Reserve is expected to maintain interest rates unchanged at its July 30, 2025, FOMC meeting, according to CME Group’s "FedWatch" data, which indicates a 97.4% probability of no rate adjustments [1]. This decision follows sustained inflationary pressures and a gradual easing of monetary policy in recent months. Meanwhile, cryptocurrency markets, particularly
(BTC) and (ETH), are bracing for potential rate cuts in September, with a 25 basis point (bps) reduction priced into futures markets. The anticipation of accommodative monetary policy has already triggered heightened volatility in digital assets, as traders recalibrate positions ahead of the next policy cycle.Bitcoin’s price dipped below $116,000 on July 25, 2025, reflecting speculative jitters over the Fed’s trajectory [1]. The asset’s 24-hour decline of 2.34% to $116,474.14, alongside a 36.17% surge in trading volume, underscores the sensitivity of crypto valuations to macroeconomic signals. Ethereum’s net supply also rose during the same period, aligning with broader market dynamics tied to the Fed’s potential actions. Analysts note that past rate adjustments by the Federal Reserve have historically driven short-term rallies in both BTC and ETH, as seen in mid-2023 [1]. This pattern suggests that September’s anticipated cut could reignite speculative activity, though market participants remain cautious ahead of the July decision.
The Coincu research team highlighted that investors are already adjusting crypto portfolios in response to the September rate-cut forecast. Such adjustments reflect the interplay between fiscal policy shifts and digital asset demand, with traders leveraging macroeconomic uncertainty to hedge exposure [1]. The Federal Reserve’s decisions, however, are being tempered by regulatory quiet periods, which have discouraged public commentary from exchanges and officials during critical policy windows. This opacity has amplified uncertainty, prompting traders to rely heavily on derivative markets for signals.
Historical context reveals a consistent correlation between Fed policy cues and crypto market behavior. For instance, the temporary rallies observed in mid-2023 following rate-hike pauses indicate a recurring sensitivity to monetary easing prospects. With BTC’s current market dominance at 60.85% and a total market cap of $2.32 trillion [1], any policy-driven liquidity shifts could disproportionately impact the sector. The CoinMarketCap-documented price movements and volume surges further validate this link, though analysts caution against over-interpreting short-term fluctuations without broader economic validation.
As the Fed navigates its next move, the crypto market’s anticipation of September cuts underscores the evolving relationship between traditional monetary policy and digital assets. While the July inaction provides a temporary pause, the focus now shifts to whether September’s projected easing will materialize and how it might recalibrate risk appetite across global markets.
Source: [1] [Fed Expected to Hold Rates as Crypto Market Anticipates September Cuts] [https://coinmarketcap.com/community/articles/6883cd22f4dca2206ba47294/]
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