![\"Markets](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/Federal-Reserve-System-FRS-FRS-SSHA-2.webp.webp\"\/)
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A cut to the key rate at the the Fed would propel cryptocurrencies higher next quarter, said Crypto.com chief executive Kris Marszalek in an interview with Bloomberg<\/a>.\u00a0<\/p>\n He expects a market-friendly decision at the 17 September meeting.\u00a0<\/p>\n After last year\u2019s cut from 5.5% to 4.5%, cryptocurrencies rose 57% over four months. Investors now put the probability of US monetary easing at 91.7%. The figure climbed after Fed chair Jerome Powell\u2019s remarks<\/a> at the Jackson Hole symposium.<\/p>\n MN Capital founder Micha\u00ebl van de Poppe is similarly upbeat.\u00a0<\/p>\n The past three years haven\u2019t shown a correction in September.<\/p>\n The correction took place in August. <\/p>\n In August, #Bitcoin<\/a> corrected by nearly 10%. <\/p>\n Yes, we could have a deeper correction and yes, I\u2019m heavily buying that one, but the closer we get to the FED meeting, the less of\u2026<\/p>\n \u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) September 2, 2025<\/a><\/p>\n<\/blockquote>\n \u201cThe past three years saw September \u2018in the green\u2019. The correction took place in August, when bitcoin fell nearly 10%. Yes, we might get a deeper drawdown\u2014and yes, I\u2019m buying heavily into it\u2014but the closer we get to the Fed meeting, the lower the chances the decline continues, especially if BTC breaks above $112,000,\u201d he said.\u00a0<\/p>\n<\/blockquote>\n Over the past 24 hours bitcoin has risen 1.6%. At the time of writing the asset trades at $111,500.\u00a0<\/p>\n For more on August\u2019s results for the first cryptocurrency, see ForkLog\u2019s monthly digest.\u00a0<\/p>\n A dissenting view\u00a0<\/p>\n Government-bond yields are rising ahead of the next Fed rate cut, signalling investor pessimism, noted the trader known as Doctor Profit.\u00a0<\/p>\n The market is extremely Bearish!<\/p>\n 2024: Yields crashed -16% in weeks before the Fed\u2019s first cut. Markets rushed into bonds, betting big on lower rates. \u2014> Effect is Bullish!<\/p>\n 2025: Yields are rising +5% into the next cut. Investors are dumping bonds, demanding higher payback to\u2026<\/p>\n \u2014 Doctor Profit \ud83c\udde8\ud83c\udded (@DrProfitCrypto) September 2, 2025<\/a><\/p>\n<\/blockquote>\n In 2024, US monetary easing was accompanied by a 16% drop in yields and a rush into bonds, he stressed. Today, the debt market is behaving bearishly.\u00a0<\/p>\n \u201cBond yields have risen 5% ahead of the next cut. Investors are dumping them en masse, demanding higher compensation for risk,\u201d said Doctor Profit.\u00a0<\/p>\n<\/blockquote>\n He drew a parallel with the credit system: even as the Fed trims short-term rates, the cost of long-term borrowing for the government, companies and households keeps rising.<\/p>\n \u201cThis means the Fed has lost control. [\u2026] The only ones who believe in a positive effect are retail investors. The regulator is cutting rates, but markets don\u2019t believe this will fix anything. Big players are rotating into bonds, demanding higher yields,\u201d he added.\u00a0<\/p>\n<\/blockquote>\n Not everyone agreed with Doctor Profit. A user going by Eazi argued that the bond market is \u201csignalling not collapse, but a repricing of long-term premia\u201d.\u00a0<\/p>\n I don\u2019t buy the \u201cFed lost control\u201d narrative just yet the bond market isn\u2019t signaling collapse it\u2019s repricing long term risk premium after a decade of artificial suppression rising yields into cuts isn\u2019t purely bearish it\u2019s the market forcing a real cost of capital back into the\u2026<\/p>\n \u2014 Eazi of web3\u2a00\ud83c\udf5a \u26d3 (@eazibackup) September 2, 2025<\/a><\/p>\n<\/blockquote>\n \u201cRising yields into cuts is not purely bearish; it is the market forcing a real cost of capital back into the system. Historically, this resets frothy valuations before the next leg higher. What if this is not a crisis signal but a first step toward healthy, realistic market pricing?\u201d he wrote.\u00a0<\/p>\n<\/blockquote>\n![\"\u0421\u043d\u0438\u043c\u043e\u043a](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/Snimok-ekrana-2025-09-03-v-14.03.09-1024x529.png\"\/)
Source: CME FedWatch<\/a>.\u00a0<\/p>\n\n
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Hourly BTC\/USDT chart on Binance. Source: TradingView<\/a>.\u00a0<\/p>\n\n
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