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What Would a Dovish Fed Look Like in 2025? Crypto Bulls, Take Note

What Would a Dovish Fed Look Like in 2025? Crypto Bulls, Take Note

Author:
Blockworks
Published:
2025-07-30 03:42:24
6
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What would a dovish Fed look like?

The Fed's printing press is warming up again—here's how a dovish pivot could send crypto markets into hyperdrive.

Rate Cuts: The Ultimate Rocket Fuel

When Powell hints at lowering rates, Bitcoin traders start drooling. History shows every basis point cut sends fresh capital flooding into risk assets—especially decentralized ones that laugh at traditional finance's 2% inflation targets.

Balance Sheet Ballet

Watch for the Fed's reverse repo unwind. Last time they tried this delicate dance, stablecoin issuers mopped up $120B in liquidity faster than Wall Street could say 'quantitative easing.'

The Inflation Paradox

CPI prints might say 'crisis'—but crypto markets hear 'buy signal.' Smart money's already rotating out of bonds and into DeFi yield farms offering 10x the returns of your banker's 'high-yield' savings account.

Memo to traditional investors: Your 60/40 portfolio is about to get rekt by a bunch of apes trading JPEGs. The Fed's put option now covers digital assets—whether they admit it or not.

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