Fed Slashes Rates Again as Powell Faces Mounting Pressure - Crypto Watchers Brace for Impact

Jerome Powell's Fed doubles down on rate cuts—just as crypto's looking for its next catalyst.

Pressure Cooker at the Fed

Powell's navigating a political and economic minefield. Another cut signals concern—but crypto traders see opportunity in every central bank hesitation.

Crypto's Rate Cut Reaction

Digital assets don't wait for invites. Bitcoin's already pricing in the liquidity surge—while Wall Street still debates the footnote in the Fed's statement. Typical.

Traditional finance frets about inflation. Crypto's already hedging it.

The U.S. Federal Reserve has decreased the standard interest rate by nearly 25 base points. Hence, the exclusive interest rate falls within the 4%-4.25% range, and eleven of the total twelve members of the Federal Open Market Committee (FOMC) have agreed to this decision.

This instance marks the 4th cut event since 2024’s latter days, with stubborn inflation, rising unemployment, and decreased job growth being the key elements backing the move. Hence, the decision taken by the Fed is sending waves through global finance, especially in crypto market.

Fed Slashes Rates as Trump Pushes for Aggressive Cuts

The latest decrease in rates to the 4%-4.25% range plays a critical role in elevating the financial growth. This occurred following U.S. President Donald Trump’s pressure on the Federal Reserve to implement comprehensive rate cuts. In this respect, he even hinted at the removal of the Fed Chairman Jerome Powell.

As a result of this, the exclusive rate cuts boost the investor sentiment, especially within the crypto sector. Decreased rates normally minimize the appeal of conventional savings and financial bonds, pouring funds into top crypto assets like Bitcoin ($BTC), stablecoins, and ethereum ($ETH).

Keeping this in view, although the market onlookers argue that additional liquidity from the new rate cuts could bolster crypto trading volumes, much relies on the dovish signals from the U.S. Federal Reserve in its future projections.

Market Watchers Eye Growth in Crypto Sector as Liquidity Shifts

In the meantime, while the digital asset sector is keenly tracking the latest decisions taken by the Fed, liquidity shifts could substantially contribute to reshaping the wider market dynamics. Additionally, the Senate has confirmed a pro-crypto economist, Stephen Miran, to the Federal Reserve Board. This signals a likelihood for further aggressive easing in interest rates.