Crypto Boom Soon? Major Banks Predict At Least 2 Rate Cuts After Weak Labor Data

2025-10-22 13:22:26

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The crypto world’s been buzzing lately about potential Federal Reserve interest rate cuts. I’ve noticed how the market surged after Powell’s Jackson Hole speech - traders clearly loved what they heard.

But Friday’s NFP data release (September 5) triggered something different. Only 22,000 jobs added in August? That’s pathetically below the expected 75,000. Yet ironically, this economic weakness might actually fuel the next crypto rally.

Weak Labor Data Increases Likelihood Of Rate Cuts: Major Banks

Looking at how the big banks are responding, it’s fascinating to see their sudden pivot. Bank of America analysts have abandoned their “no cuts in 2025” stance, now predicting two 25-point cuts (September and December).

Goldman Sachs is even more aggressive, forecasting three cuts before year-end - September, October, and November. Citigroup agrees on three cuts but places them in September, October, and December.

I can’t help but wonder if these analysts were asleep at the wheel before. The economic warning signs have been there for months, yet they’re only now acknowledging the obvious need for monetary easing.

How Successive Rate Cuts Could Catalyze Crypto Bull Run

Let’s be honest about what rate cuts really mean for crypto: when traditional fixed-income investments become less attractive, money flows to higher-risk assets. It’s not rocket science.

History shows us that low interest environments correlate with crypto price surges. The current total market cap sits around $3.09 trillion (down 1% in the past day), but I suspect this is the calm before the storm.

What frustrates me is how predictable this cycle has become. The Fed raises rates too aggressively, damages the labor market, then must backpedal with cuts that ultimately pump asset prices. Retail investors who understand this dance can position themselves accordingly, while those who don’t get left behind.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Crypto Boom Soon? Major Banks Predict At Least 2 Rate Cuts After Weak Labor Data

Weak Labor Data Increases Likelihood Of Rate Cuts: Major Banks

How Successive Rate Cuts Could Catalyze Crypto Bull Run

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