Overview

Data reveals that markets are preparing for four rate cuts in 2025, amounting to 0.25 basis points each in June, July, September, and December. These cuts, implemented by central banks like the Federal Reserve, aim to promote economic growth by lowering borrowing costs.

Key Points

• Cryptocurrency markets witnessed intense volatility following U.S. tariff announcements, with major assets experiencing initial gains followed by sharp declines.
• Notable volumes of Bitcoin, Ethereum, and XRP flowed into exchanges, indicating a readiness to liquidate positions amid economic uncertainty.
• Anticipation surrounds the U.S. non-farm payroll report, which could impact Federal Reserve rate cut expectations and influence cryptocurrency valuations.

The market’s recent downturn is expected to ease as investors awaiting important economic data speculate on a potential bounce in Bitcoin prices shortly.

Market Reactions

On the days preceding the tariff announcement, major cryptocurrencies like Bitcoin, Ethereum, Solana’s SOL, and XRP rapidly fluctuated. Following the tariff announcement, prices stabilized, with BTC maintaining a figure above $83,100 and ETH rebounding over $1,800.

Insights from QCP Capital

According to a message from Singapore-based QCP Capital, investors are expecting signs of weakness in the U.S. labor market. If job figures fall short of expectations, it would bolster arguments for future Fed rate cuts as policymakers strive to support a slowing economy.

In essence, historic data indicates that rate cuts typically favor cryptocurrency valuations, attracting investors away from traditional assets like bonds to alternatives such as Bitcoin, further providing a cushion against inflation.