Slower Crypto Bull Run? September Rate Cut Now Just 40% Likely

Article with AI Analysis:

Date: 31 July 2025

Source: Cointelegraph, Martin Young

Introduction

The crypto market, once buzzing with the anticipation of a September rate cut by the U.S. Federal Reserve, is facing a wave of cautious recalibration. Federal Reserve Chair Jerome Powell’s remarks this week dialled back investor expectations triggering both concern and resilience in equal measure.

While hopes for quick liquidity are fading, the crypto market’s steady recovery suggests that this bull cycle may simply be more gradual rather than derailed. Investors are still holding on just more tightly than before.

Powell Holds the Line: No Promises for September

At the Federal Open Market Committee (FOMC) meeting, the Fed left interest rates unchanged at 4.25% – 4.5%. Powell remained non-committal on September's decision, instead stressing that the Fed would "follow the data" in the coming months.

Rising tariffs are now showing up in inflation figures. With inflation at 2.7% and rising, Powell hinted that a cut in the short term may be unjustifiable especially if the labour market remains strong.

The market quickly adjusted. Prior to Powell’s comments, traders saw a 63% chance of a September cut. After the press conference? That probability plunged to 40%.

Crypto’s Response: A Delayed Push, Not a Pullback

For many in the crypto world, a slower rate-cut timeline isn’t the end it’s just a shift in tempo. Nick Ruck of LVRG Research noted that while the bull market might slow, strong liquidity and investor interest are likely to hold the floor.

Apollo Capital’s Henrik Andersson echoed the sentiment, pointing out that “this isn’t a shock markets had already priced it in.” Despite a small dip after the announcement, crypto prices rebounded during Asia’s Thursday session.

Bitcoin and altcoins remained steady, and total crypto market capitalisation hovered around $3.94 trillion. That shows resilience not retreat.

AI-Powered Sentiment Analysis

Our AI analysis of this article revealed the following:

• sentiment_score: +0.18 The overall tone is cautiously optimistic, with acknowledgement of setbacks balanced by long-term potential.

• Financial Sentiment: +1.32 Markets reacted modestly negative in the short term, but expectations for year-end rate cuts support medium-term investor confidence.

• Polarity Score: 0.14 The article leans slightly positive, highlighting resilience despite setbacks.

• Subjectivity Score: 0.29 The piece remains fairly objective, rooted in data and direct quotes.

These scores suggest that while investors face near-term uncertainty, the overall outlook remains hopeful. Markets have recalibrated, not retreated.

Read More

Read the full article on: https://cointelegraph.com/news/fed-rate-cut-chance-fall-september-slowing-crypto-bull-run

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Disclaimer

This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.