Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Post-FOMC Crypto Rally is Likely, ‘Significant’ Chance of 50bps Cut – Mulhem

Post-FOMC Crypto Rally is Likely, ‘Significant’ Chance of 50bps Cut – Mulhem

CryptodailyCryptodaily2025/09/15 16:00
By:Crypto Daily

Financial analyst Suliman Mulhem has reiterated his warning that the US labour market is far weaker than the Federal Reserve believes, and says policymakers could vote in favour of a larger-than-expected interest rate cut at this week’s Federal Open Market Committee (FOMC) meeting.

Mulhem, who ahead of the July meeting cautioned that failing to cut rates then would likely necessitate a 50-basis-point reduction in September, also called on the Fed to impose a “tariff-inflation exclusion” and to treat tariff-driven price rises as transitory.

Speaking ahead of the upcoming September decision, Mulhem said markets and analysts are underestimating the chances of an aggressive cut by the Fed in September.

“Although markets are currently pricing in just a 3.6% chance of a 50bps cut at this week’s FOMC meeting, I believe there is a significant chance of the Fed voting in favour of a jumbo cut, as I don’t think a 25bps cut is sufficient to address the current weakness in the US labour market,” Mulhem said.

“However, even a 25bps cut – which already appears to be fully priced in by the market – would still be bullish for risk assets, such as crypto and equities, if it’s accompanied by Fed Chairman Jerome Powell being dovish and setting up further cuts in Q4.”

Mulhem argued that rate reductions would be particularly supportive of digital assets, pointing to both the liquidity effect and the unique role of corporate demand during the current cycle.

“The Federal Reserve cutting rates is typically bullish for cryptocurrencies, as it leads to liquidity flowing out of money market funds and other interest-bearing assets, into risk assets,” Mulhem said. 

“Cryptocurrencies also benefit by virtue of a lower federal funds rate weakening the US Dollar, and therefore causing them to appear stronger in USD-denominated pairs.

“Furthermore, interest rate cuts are likely to be even more powerful during the current crypto cycle, as lower rates will make it easier for crypto treasury companies, such as Strategy and BitMine, to raise funds on favourable terms which they can use to continue to expand their respective BTC and ETH treasuries.

"Crypto treasury companies have been one of the largest demand sources for BTC and ETH in 2025, so the importance of them being able to raise additional capital more easily should not be underestimated."

Mulhem’s remarks suggest that the Fed’s policy path in the coming months could have significant implications not only for traditional financial markets, but also for the trajectory of Bitcoin and Ether.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Solana Sees 2.25 Billion USDC Minted In September

Quick Take Summary is AI generated, newsroom reviewed. Solana recorded $2.25 billion USDC Mint during September 2025 Institutions prefer Solana for speed, liquidity, and regulatory clarity GENIUS Act rules boost compliance trust for institutional stablecoin adoption Public companies increasingly use Solana treasuries for staking and yield Circle expands USDC Mint globally under MiCA and e-money frameworksReferences $2.25B $USDC Minted on Solana This Month

coinfomania2025/09/16 23:03

Get Your Bitcoin and Ethereum via PayPal: P2P Payments Have Just Entered the Cryptocurrency Space

PayPal has launched peer-to-peer payments for Bitcoin and Ethereum, allowing users to send and receive cryptocurrencies directly through its platform more easily than before.

Cryptoticker2025/09/16 21:59
Get Your Bitcoin and Ethereum via PayPal: P2P Payments Have Just Entered the Cryptocurrency Space