Lower rates typically benefit speculative assets like Bitcoin, which some predict could reach $200,000.
The Federal Reserve will hold its next meeting on September 16-17, 2025. This gathering could determine the direction of U.S. interest rates for the coming months. Market participants currently expect the central bank to implement up to three rate reductions this year. ETHNews analysts project the first cut could measure 50 basis points as early as next week.
Financial institutions have published forecasts suggesting an initial 0.25% reduction in September. Many anticipate another cut of equal magnitude in December. A third reduction might follow either in late 2025 or during the first half of 2026.
Market analyst Paul Barron examined the probability of multiple cuts. He referenced Polymarket data indicating a 17.5% chance for a 50 basis point reduction. The platform shows an 80% probability for a standard 25 basis point cut. The possibility of a rate increase remains minimal at 0.3%.
Economist Mohamed A. El-Erian stated that rate cuts this year appear possible. During a CNBC interview, he noted, “We’ve seen this pattern before – they refused to cut in July, then implemented a 50 basis point cut in September.” He added that current economic risks seem elevated compared to last year, particularly regarding financial stability for lower-income households.
Wall Street strategist Tom Lee commented that lower interest rates typically benefit speculative assets including Bitcoin and Ethereum. He suggested that if the Federal Reserve begins cutting rates, Bitcoin’s price could approach $200,000 by year-end.
Author Ruchir Sharma presented a contrasting view. He stated that financial conditions already appear accommodative and expressed concerns about the federal budget deficit. Sharma maintains that keeping rates at current levels would help prevent market overreactions to economic weakness.
