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Markets have increasingly priced in a significant shift in Federal Reserve policy, with a 92.1% probability of a rate cut at the September meeting, according to recent analysis. This expectation has sparked renewed interest in digital assets, particularly
, which could benefit from a more accommodative monetary environment. The Federal Reserve’s policy trajectory has long influenced risk assets, and with inflation easing and labor market data softening, investors are preparing for the possibility of prolonged easing. If the Fed proceeds with a reduction in the target rate to a range of 4.00% to 4.25%, it would signal a broader move toward easier financial conditions, reducing the cost of capital and encouraging risk-taking in public markets [1].A cut in interest rates typically enhances liquidity and supports asset valuations by compressing discount rates. In the crypto space, this dynamic can increase spot demand and trading activity as investors allocate more capital into risk assets. If the Fed initiates a multi-month easing cycle, the impact on digital assets could extend beyond short-term volatility and create a more favorable backdrop for sustained growth in XRP and other cryptocurrencies [1].
XRP, in particular, benefits from a supportive macroeconomic environment. Lower interest rates improve investor appetite for risk, which can lead to greater inflows into digital assets. This environment often results in higher trading activity and deeper markets, supporting stronger price performance. For institutional investors exploring the real-world applications of XRP and Ripple’s technology, a more accommodative Fed policy can remove a key hurdle and accelerate adoption timelines [1].
However, the probability of a September cut is not fixed and will remain sensitive to incoming economic data. If the Fed delays action, the benefits for digital assets could be delayed as well. For XRP holders, the key will be how the Fed navigates the delicate balance between inflation control and economic growth in the coming months. A confirmed easing cycle would likely encourage more inflows into the asset class, strengthening the case for higher valuations [1].
Separately, other market participants have echoed the high probability of a September rate cut, with a CME-based indicator suggesting a roughly 92% chance [2]. While some analysts have expressed caution over potential inflation persistence, the broader market consensus remains focused on the likelihood of a 25 basis point reduction in the federal funds rate [3].
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[1] "Chance of XRP Massive Rally In September Rises to 92%. Here’s What Is Coming" (https://timestabloid.com/chance-of-xrp-massive-rally-in-september-rises-to-92-heres-what-is-coming/)
[2] "Bitcoin Faces Strong Chance Of $150K Rally Before ..." (https://www.mitrade.com/au/insights/news/live-news/article-3-1046061-20250817)
[3] "The data reduced hopes for aggressive Fed cuts..." (https://www.instagram.com/nordfx/?hl=en)

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