Analysts say traders have already priced in an 81% chance of a cut, creating expectations that are rippling across traditional and crypto markets alike.
For crypto investors, the stakes are high. Historically, lower interest rates have encouraged risk-taking by easing borrowing conditions, often fueling rallies in digital assets. The possibility of a September rate cut has therefore become one of the most closely watched events of the year.
The Federal Reserve has resisted cutting rates so far, even as major central banks abroad moved in that direction. President Trump has openly pressured Chair Jerome Powell, with reports suggesting that surging U.S. debt levels are pushing the administration to advocate for lower rates.
Markets reacted nervously when the Fed held rates steady at its last meeting, triggering a brief selloff. However, analysts argue that the current pullback in Bitcoin, Ethereum, and other leading cryptocurrencies has reset valuations into what many see as attractive buy zones.
Behind the scenes, many traders are preparing for a potential breakout. Limit orders are reportedly stacked across major exchanges, waiting for a clear macro catalyst. A Fed pivot, analysts suggest, could be the very trigger that ignites the next wave of bullish momentum.
For now, sideways price action has tempered enthusiasm, but the overall sentiment remains positive. If the Fed cuts rates in September, it could set off renewed demand for crypto assets, strengthening the case that digital currencies are increasingly tied to broader monetary policy shifts.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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By Coindoo
about 3 hours ago
