The market generally expects the Fed to lower interest rates in September 2025. According to CME's "Fed Watch" data, as of September 5th, the probability of the Fed lowering interest rates by 25 basis points in September is as high as 99.4%, while the probability of maintaining the interest rate is only 0.6%. The interest rate cut in September may have the following impacts on the crypto market:
Price Increase: Wincent's Senior Director Paul Howard stated that the probability of the Fed cutting interest rates has risen this month, which may not only further boost the performance of Ethereum but also drive the entire crypto market to strengthen in the fourth quarter. Driven by the potential interest rate cuts in the U.S., it is expected that all major cryptocurrencies will reach historical highs in the fourth quarter.
Increased liquidity: A decrease in interest rates can lead to increased liquidity in the global market, with some funds potentially flowing into the crypto market, resulting in heightened trading activity. This helps to improve the market liquidity and trading volume of cryptocurrencies, while also potentially intensifying market volatility.
Increased Investment Appeal: The Fed's interest rate cuts typically lower the yields on dollar-denominated assets, prompting investors to seek alternative assets with higher returns. Cryptocurrencies, as a non-traditional asset, may therefore gain more investment interest, driving prices up. Investors may view cryptocurrencies as a hedge against volatility in traditional financial markets and inflation, which is particularly evident in a global monetary easing environment.
Market Divergence: As institutions view Ethereum as a "higher beta investment target," large holders' asset allocation may shift more frequently, and the momentum of "blue-chip" cryptocurrencies in the fourth quarter may come more from Ethereum. #BTC##ETH##Gate上线Ondo专区现货交易##非农就业数据来袭##今日你看涨还是看跌？#
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The market generally expects the Fed to lower interest rates in September 2025. According to CME's "Fed Watch" data, as of September 5th, the probability of the Fed lowering interest rates by 25 basis points in September is as high as 99.4%, while the probability of maintaining the interest rate is only 0.6%. The interest rate cut in September may have the following impacts on the crypto market:
Price Increase: Wincent's Senior Director Paul Howard stated that the probability of the Fed cutting interest rates has risen this month, which may not only further boost the performance of Ethereum but also drive the entire crypto market to strengthen in the fourth quarter. Driven by the potential interest rate cuts in the U.S., it is expected that all major cryptocurrencies will reach historical highs in the fourth quarter.
Increased liquidity: A decrease in interest rates can lead to increased liquidity in the global market, with some funds potentially flowing into the crypto market, resulting in heightened trading activity. This helps to improve the market liquidity and trading volume of cryptocurrencies, while also potentially intensifying market volatility.
Increased Investment Appeal: The Fed's interest rate cuts typically lower the yields on dollar-denominated assets, prompting investors to seek alternative assets with higher returns. Cryptocurrencies, as a non-traditional asset, may therefore gain more investment interest, driving prices up. Investors may view cryptocurrencies as a hedge against volatility in traditional financial markets and inflation, which is particularly evident in a global monetary easing environment.
Market Divergence: As institutions view Ethereum as a "higher beta investment target," large holders' asset allocation may shift more frequently, and the momentum of "blue-chip" cryptocurrencies in the fourth quarter may come more from Ethereum. #BTC# #ETH# #Gate上线Ondo专区现货交易# #非农就业数据来袭# #今日你看涨还是看跌？#