UBS Predicts Major Federal Reserve Rate Cuts for 2025 – Coincu

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Key Points:

  • UBS forecasts significant rate cuts by 2025.
  • Cryptocurrency markets respond with increased volatility and investment.
  • Bitcoin trends parallel previous Federal Reserve rate cycles.

The forecasted rate cut by UBS analysts could reshape financial markets, influencing both traditional markets and cryptocurrencies. The projected economic adjustments hint at strategic shifts in investment flows and market dynamics.

UBS analysts provide a comprehensive outlook that anticipates shifts in economic policy, potentially easing by 75-100 basis points by 2025. This forecast is framed by ongoing inflation concerns and the Federal Reserve’s deliberation on monetary policy adjustments.

UBS Analysts Predict 75-100 Basis Point Rate Cut by 2025

UBS Analysts, including Arend Kapteyn and Bhanu Baweja, support this forecast based on economic insights and policy evaluation. With projected cuts between 75-100 basis points in 2025, these strategists expect an easing cycle amidst ongoing inflation concerns. The Federal Reserve internally debates the speed and extent of these cuts. Cryptocurrency markets historically react with volatility to rate changes but often see increased investment subsequently. UBS members suggest rate normalizations and highlight implications for on-chain data, like increased Total Value Locked in DeFi.

Market enthusiasts and participants predict a likely boost in risk asset investments, including cryptocurrencies. Arthur Hayes and Raoul Pal previously identified such cuts as pivotal for liquidity influx, generating significant attention. Community sentiment remains bullish, anticipating positive outcomes for digital assets against fiat concerns.

“The normalization of inflation will create an environment conducive to rate cuts, drawing parallels to historical easing cycles of G10 countries.” – Arend Kapteyn, Strategist, UBS

Bitcoin’s Volatility Mirrors Historical Federal Rate Cut Trends

Did you know? During the 2019 Federal Reserve rate cut cycle, Bitcoin initially showed volatility before rallying, mirroring potential trends from similar monetary policy easing.

Bitcoin stands at Bitcoin price surge explained amid trade tensions $83,589.80 with a market cap surpassing 1.66 trillion dollars (source: CoinMarketCap). Over the past 90 days, BTC witnessed a 13.27% decline. Current market dominance is 62.00%, with a 24-hour trading volume of 53.52 billion dollars, revealing fluctuating investment trends.


bitcoin-daily-chart-112bitcoin-daily-chart-112
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 08:27 UTC on April 3, 2025. Source: CoinMarketCap

The Coincu research team suggests potential positive investor sentiments and regulatory environments. Reduced rates may amplify DeFi activities and drive crypto adoption globally. These state-adjusted policies could ultimately impact technological innovations around digital assets.



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