Kris Marszalek, CEO of Crypto.com, predicts that a Federal Reserve interest rate cut in September 2025 could lead to a surge in the cryptocurrency market.
CEO Crypto.com Prediction for Rate Cuts
Kris Marszalek, the CEO of Crypto.com, claims that a rate cut in September would inject much-needed liquidity, thereby fueling demand for risk assets such as Bitcoin and Ethereum.
> "Every time the Fed eases, crypto markets feel the impact almost instantly," Marszalek noted.
Comparison with Historical Data
Marszalek pointed out that previous Fed rate cuts in late 2024 triggered a 57% surge in digital asset markets over four months.
> "When money is cheaper and liquidity expands, risk assets benefit first," he explained.
Potential Risks and Outlook for Investors
Some analysts warn that the situation may not be as straightforward as it seems. They highlight rising bond yields which could lead to increased market volatility. Investment strategies and Fed policy could have significant impacts on the crypto markets.
> "Monetary policy will drive momentum, but macro risks like soaring yields are the wild card," Marszalek added.
As the Fed's next meeting approaches on September 17, investors are anticipating a rate cut that could positively impact the crypto market. However, risks associated with rising bond yields remain.
