Goldman Sachs Anticipates Fed Rate Cuts, Raising Questions for Crypto Investors

As inflation in the U.S. approaches the Federal Reserve's target of 2%, the Fed implemented its first rate cut in September, reducing rates by 50 basis points.

The central bank is set to announce its next decision in November.

Market analysts at Goldman Sachs predict that the Fed will continue to lower interest rates by 25 basis points each month from November 2024 through June 2025, ultimately bringing rates to between 3.25% and 3.5%, as reported by Reuters.

According to the CME’s Fedwatch tool, market sentiment currently anticipates a 92.1% chance of a 25-basis-point cut in November, while only a 7.9% likelihood exists for rates to remain unchanged.

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War and Inflation Could Propel Bitcoin Prices, Says BitMEX Co-Founder

Experts suggest that past Fed rate reductions often diminish the attractiveness of conventional financial products, pushing investors toward riskier assets like Bitcoin.

Lower interest rates may weaken the dollar, which could increase interest in cryptocurrencies. Analysts believe that if the expected rate cuts materialize, major cryptocurrencies like Bitcoin could see price gains in the coming months.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.