{"id":43824,"date":"2025-08-24T21:16:30","date_gmt":"2025-08-24T21:16:30","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=43824"},"modified":"2025-08-24T21:16:30","modified_gmt":"2025-08-24T21:16:30","slug":"expert-sees-80-chance-of-september-rate-cut-what-it-means-for-crypto","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=43824","title":{"rendered":"Expert Sees 80% Chance Of September Rate Cut\u2014What It Means For Crypto"},"content":{"rendered":"
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The Bitcoin and the crypto market witnessed significant volatility on Friday, August 22, rallying hard on the back of the Federal Reserve Chair Jerome Powell\u2019s speech at Jackson Hole<\/a>. Powell suggested a possible shift in the US policy direction, hinting that the interest rates could soon be cut.<\/p>\n

This speech triggered volatility in the risk assets and the crypto market, with most large-cap cryptocurrencies jumping to new local highs. The price of Ethereum, for instance, briefly ran up to a new all-time high around $4,888 on Friday.\u00a0<\/p>\n

Now, optimism seems to be on the rise about the outcome of the Federal Open Market Committee (FOMC) meeting in September and its potential impact on Bitcoin and other risk assets.<\/p>\n

September Rate Cut Might Be A Done Deal: Expert<\/b><\/h2>\n

In a recent post on the X platform, investment research expert Jim Bianco shared<\/a> insights from Powell\u2019s speech at Jackson Hole on Friday. According to the online pundit, the Fed chair\u2019s speech was open to several interpretations, especially as seen with varying professional opinions since then.<\/p>\n

Bianco stated that Powell didn\u2019t exactly specify what he plans to do in the coming month, making his Jackson Hole speech a \u201cRorschach test.\u201d For context, the Rorschach test is a projective test that employs ambiguous stimuli (typically inkblots) to evoke a person\u2019s internal attitude and biases.<\/p>\n

Bianco highlighted that the probability of a September rate cut was approximately 80% at the start of the week. However, this narrative\u2014a week ago\u2014hinged on a strong August payroll and the hot August CPI (Consumer Price Index) moving higher than July\u2019s 3.1%. Both data are expected to be released before the FOMC meeting on September 18 and are expected to determine whether or not the Fed will cut interest rates<\/a>.<\/p>\n

Following Powell\u2019s speech at Jackson Hole and at the end of Friday, the probability of the rate cuts returned at roughly 80%\u2014essentially back to the past week\u2019s narrative. Ultimately, Bianco believes that the situation of the September rate cut never changed and is still dependent on economic data in early September.<\/p>\n

\"Bitcoin\"<\/p>\n

Bianco concluded:\u00a0<\/p>\n

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To paraphrase Miracle Max in The Princess Bride, a September rate cut is mostly a done deal, but that means it\u2019s also slightly not a done deal.<\/p>\n<\/blockquote>\n

What This Means For Bitcoin And Crypto Market?<\/b><\/h2>\n

Lower interest rates typically make risk assets, like cryptocurrencies and equities, more attractive investment options, as the potential yield on fixed-income assets (like treasury bonds) falls. Historically\u2014and as seen on Friday, Bitcoin and the crypto market tend to surge whenever the Fed cuts interest rates.<\/p>\n

Hence, a September rate cut by the US Federal Reserve could be generally bullish for Bitcoin and crypto, as investors might rush to these risk assets for higher gains. As of this writing, the entire cryptocurrency market is valued at about $4.07 trillion.<\/p>\n

\"Bitcoin\"<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Bitcoin and the crypto market witnessed significant volatility on Friday, August 22, rallying hard on the back of the Federal Reserve Chair Jerome Powell\u2019s speech at Jackson Hole. Powell suggested a possible shift in the US policy direction, hinting that the interest rates could soon be cut. This speech triggered volatility in the risk […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-43824","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43824"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43824\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}