Multiple financial institutions are predicting that the US Federal Reserve will implement at least two interest rate cuts in 2025 due to a weakening job market and economic conditions. Bank of America has reversed its previous stance, now forecasting two 25 basis point (BPS) cuts in September and December. Goldman Sachs anticipates three cuts of 25 BPS, with the first in September, followed by cuts in October and November. Citigroup also projects a 75 BPS reduction in 2025, occurring in September, October, and December. A recent jobs report showed only 22,000 jobs added in August, significantly below expectations, adding pressure for rate cuts. Currently, over 88% of traders expect a cut in September. Lower interest rates could encourage increased investment in riskier assets like cryptocurrencies, which traditionally benefit from easier credit conditions.

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