Fed's Dovish Stance Expected To Weaken In 2025, Impacting Crypto Market

According to Odaily, Zaheer Ebtikar, founder of the crypto fund Split Capital, has indicated that the global market anticipates a weakening of the Federal Reserve's dovish stance by 2025. This expectation is prompting crypto event traders and market makers to reduce their risk exposure. On Wednesday, Federal Reserve officials lowered the benchmark interest rate for the third consecutive time, while also controlling the number of rate cuts expected in 2025. Typically, lower interest rates boost demand for higher-risk assets, such as cryptocurrencies. David Lawant, Head of Research at crypto prime broker FalconX, noted that while the current rate cut forecasts are influencing prices, they may not have a lasting impact due to the decreasing correlation between Bitcoin and major stock indices. Lawant explained that the anticipated slowdown in rate cuts by 2025 is not entirely unexpected, but it does exert some pressure on risk assets, including cryptocurrencies. Although macroeconomic factors have traditionally influenced cryptocurrency price trends, industry-specific factors may become more dominant in the coming weeks and months, especially as the market anticipates policy changes from a new administration.