Crypto Market Rallies on Expectations of Aggressive Fed Rate Cuts

The cryptocurrency market is surging as investors anticipate deeper monetary easing from the U.S. Federal Reserve. Standard Chartered has doubled its rate cut forecast to 50 basis points for September, citing weaker-than-expected labor data. August non-farm payrolls showed just 22,000 jobs added, far below projections, while unemployment rose to 4.3%.

Bank of America also adjusted its outlook, now predicting two quarter-point cuts this year. However, Standard Chartered cautioned that sticky inflation may limit further easing after September. Traders are closely watching Fed Chair Jerome Powell's upcoming speech for confirmation.

Digital assets are benefiting from the prospect of looser monetary policy, which typically reduces borrowing costs and steepens the yield curve. This environment creates favorable conditions for crypto market growth as investors seek higher-yielding alternatives.