The Federal Reserve is expected to cut interest rates on Sept. 17, 2025, for the first time in nine months, potentially signaling a shift in policy stance, which could impact equity and crypto markets.

A half-percentage-point cut could indicate dissatisfaction with slowing growth, potentially leading to a rally in crypto assets. However, a large cut may cause investor nervousness about the economy.

The base scenario is a quarter-point cut, signaling a new easing cycle, with significant implications for over $7 trillion in money-market funds.

If the Fed keeps interest rates unchanged, it could lead to a temporary sell-off in stocks and cryptocurrencies, with the dollar likely to appreciate, impacting Bitcoin.

Veteran trader Matthew Dixon suggests avoiding a rapid 50 bps cut and moving to slow easing for market stability, as retail sales show no signs of panic sell-off.

Trading firm QCP analysts affirm that Fed easing supports risk assets but caution about market strength and stretched valuations.

At press time, Bitcoin was trading at $115,589.87, up 1.27% over the last week, with a total crypto market cap of $4.02 trillion.

Read more at Yahoo Finance: Veteran trader rules out 50bps rate cut, predicts ‘best results’