Quick Breakdown
- Standard Chartered expects the Fed to cut rates by 50 bps in September, citing weak U.S. labour data.
- Bank of America forecasts two smaller rate cuts, while markets await Powell’s speech on September 17.
- Bullish sentiment is lifting crypto markets, with traders betting on higher Bitcoin prices.
The cryptocurrency market is showing renewed strength as traders anticipate deeper monetary easing from the U.S. Federal Reserve at its upcoming policy meeting this month.
Standard Chartered Sees 50 bps Cut
According to a September 8 Reuters report, Standard Chartered now expects the Fed to slash rates by 50 basis points in September, doubling its previous 25 bps forecast. The shift comes after weaker-than-expected labour data, with non-farm payrolls adding just 22,000 jobs in August versus the projected 75,000, while unemployment climbed to 4.3%—its highest level in over a year. The bank noted the labour market had turned “from solid to soft in less than six weeks,” creating room for a sharper policy move.
Standard Chartered forecasts 50 bps Fed rate cut amid weakening U.S. labour market https://t.co/Ub662CmA4B
— Global Financial Digest (@globalfinanci14) September 8, 2025
Diverging Forecasts from Wall Street
Bank of America has also revised its outlook, predicting two smaller cuts—one in September and another in December. However, Standard Chartered suggested the Fed may opt for a single front-loaded reduction, citing “sticky inflation and fiscal easing” as potential barriers to further action this year. Markets are now pricing in a near-certain cut, with attention turning to Fed Chair Jerome Powell’s September 17 speech for clarity on the central bank’s direction.
Crypto Traders Position for Upside
Lower borrowing costs and steeper yield curves are historically positive for Bitcoin and other risk assets. This has sparked bullish activity in derivatives markets, where open interest in Bitcoin call options for December 2025 has surged, signaling confidence in potential new highs. The momentum comes as the Fed faces additional scrutiny following subpoenas linked to mortgage fraud claims against Governor Lisa Cook, raising questions about policy independence.
With liquidity expected to improve and investor risk appetite recovering, many in the crypto space view the Fed’s September decision as a defining moment for the next market rally.
Notably, Arthur Hayes, co-founder of BitMEX, compared the U.S. Federal Reserve’s recent actions to a fleeting “sugar high” for the economy, suggesting that this could lead to a temporary boost with lasting impacts on the crypto market.
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