Crypto markets are expected to enter “up only” mode once the US Treasury hits its goal of filling the General Account with $850 billion, according to Arthur Hayes. However, not all analysts agree that liquidity will flow to financial markets as predicted.

The US Federal Reserve slashed interest rates by 25 basis points, the first cut since 2024. Bitcoin experienced a sell-off following the rate cut, with markets likely pricing in the move beforehand. Federal Reserve chairman Jerome Powell mentioned that the FOMC remains divided on additional rate cuts in 2025.

Traders anticipate a further interest rate cut of up to 50 BPS at the next FOMC meeting in October, with 91.9% expecting the cut. Data from the CME Group shows high expectations for additional rate cuts, with the company managing major financial derivatives exchanges.

Investors are bracing for more rate cuts as the Federal Reserve leans into an interest rate-cutting cycle, anticipating rising liquidity levels in the coming months. This boost in liquidity should drive asset prices higher until the cycle shifts again.

Read more at Cointelegraph: Crypto Markets Will Rally Once US Treasury Hits $850 Billion Goal: Analyst