The cryptocurrency market is showing renewed optimism after Standard Chartered upgraded its forecast for the U.S. Federal Reserve’s next policy move, now expecting a 50 basis point cut at the September meeting instead of the previously anticipated 25 bps reduction.
Fed Policy Outlook Shifts After Weak Jobs Data
The change in outlook follows disappointing August labor figures, where only 22,000 jobs were added—far short of the 75,000 forecast—while the unemployment rate rose to 4.3%, its highest in over a year. Analysts at Standard Chartered said the labor market “turned from solid to soft in less than six weeks,” creating conditions for a more aggressive Fed move.
Other major banks are also adjusting expectations. Bank of America now sees two 25 bps cuts—one in September and another in December—while Standard Chartered maintains that the upcoming cut could be a one-time adjustment due to lingering inflation pressures and ongoing fiscal support.
Markets Brace for Fed Chair Powell’s Address
With rate cuts now seen as almost inevitable, investors are eagerly awaiting Fed Chair Jerome Powell’s September 17 speech for further signals. Futures markets already price in a near certainty of policy easing.
Bullish Sentiment Returns to Crypto
For the digital asset market, a deeper-than-expected cut could act as a major tailwind. Lower borrowing costs, a steeper yield curve, and increased liquidity typically benefit Bitcoin (BTC) and other risk assets.
Derivatives markets are already showing signs of this optimism. Demand for December 2025 Bitcoin call options has surged, with open interest climbing as traders position for a potential breakout. Analysts suggest macro conditions could support fresh all-time highs if momentum holds.
A Catalyst for the Next Crypto Rally?
The Fed’s upcoming move comes as its independence faces scrutiny, following subpoenas issued in a Department of Justice probe involving Fed Governor Lisa Cook. Despite the controversy, markets are zeroed in on how monetary policy decisions could shape risk sentiment.
If the Fed delivers a 50 bps cut, many traders believe it could serve as the spark for the next major phase of crypto market growth—pushing Bitcoin and other tokens into a renewed bull cycle.
