According to StockMKTNewz, Polymarket betting markets are now pricing in two rate cuts by Jerome Powell and the US Federal Reserve as the most likely scenario for 2025 (Source: StockMKTNewz on Twitter, June 12, 2025). This renewed expectation signals a potential shift toward a more accommodative monetary policy, which historically has provided bullish momentum for major cryptocurrencies like BTC and ETH. Traders should closely monitor Fed rate decisions, as lower interest rates could drive increased demand for risk assets, including crypto, and influence market volatility.

According to @KobeissiLetter, after the release of May CPI inflation data, prediction market Kalshi now shows increased expectations for two Federal Reserve rate cuts in 2025. This shift in rate cut outlook could provide a bullish catalyst for cryptocurrencies such as BTC and ETH, as lower rates typically drive liquidity into risk assets (source: @KobeissiLetter via Twitter). Traders should monitor Federal Reserve policy updates closely, as further confirmation could trigger volatility and renewed upward momentum in the crypto market.

According to QCP (@QCPgroup), despite Federal Reserve Chair Jerome Powell's recent wait-and-see approach, market participants are already pricing in three interest rate cuts for 2025—expected in July, September, and December. This growing disconnect between official Fed communication and market sentiment is creating increased volatility, which historically has boosted trading volumes and price swings in the cryptocurrency markets. Traders should monitor Fed policy announcements closely, as rate cuts often drive capital into risk assets like Bitcoin and Ethereum, influencing short-term crypto price action and liquidity (Source: QCPgroup on Twitter, May 8, 2025).

According to @KobeissiLetter and citing @Kalshi, markets are now pricing in a total of three Federal Reserve interest rate cuts for 2025 following the latest Fed decision. Rate cut expectations have decreased by 25 basis points since their peak in April, reflecting a shift in monetary policy outlook. Despite this moderation, former President Trump continues to call for immediate rate reductions. For crypto traders, the adjusted rate cut timeline could lead to reduced speculative inflows and increased market volatility, especially as monetary policy directly influences liquidity and risk appetite in the digital asset space (source: @KobeissiLetter, @Kalshi).

According to The Kobeissi Letter, markets have now fully priced in four 25 basis point interest rate cuts by the end of 2025, reflecting expectations that the Federal Reserve will prioritize addressing declining US economic output over concerns about a potential inflation rebound (source: The Kobeissi Letter, Twitter, April 30, 2025). This outlook signals potential shifts in USD liquidity, which could impact risk assets including Bitcoin and Ethereum. Traders should monitor Fed meeting signals and US economic data releases, as rate cut expectations historically lead to increased volatility in both traditional and crypto markets. The current consensus may fuel bullish sentiment in crypto, particularly in altcoins sensitive to monetary policy shifts.