The Federal Reserve may be about to give the crypto world a major boost.
Federal Reserve Governor Christopher Waller recently suggested that an interest rate cut could happen as early as the July 29–30 meeting, marking a potential turning point for investors in Bitcoin and the broader digital asset space.
Why Does a Rate Cut Matter for Crypto?
When interest rates go down, borrowing becomes cheaper, and traditional investment options like bonds offer lower returns. This typically pushes investors to explore higher-risk, higher-reward assets — like Bitcoin, Ethereum, and other cryptocurrencies.
Waller said, “We could do this as early as July. I think we’ve got room to bring it down, and then we can kind of see what happens with inflation.”
This comes after the Fed chose to keep rates steady between 4.25% and 4.50%, while still leaving the door open for two rate cuts by the end of 2025.
According to Dan Raju, CEO of Tradier, “High interest rates scare investors away from riskier investments like crypto, and the lowering of rates will be seen as a positive by the crypto investor community.”
Crypto’s History with Rate Hikes and Cuts
- In 2022, aggressive rate hikes hit the crypto market hard — Bitcoin and altcoins dropped significantly.
- In 2023 and 2024, the Fed paused rate hikes. This gave crypto space to recover, and Bitcoin began climbing back.
- Now in 2025, crypto is riding on strong momentum — thanks to spot Bitcoin ETFs, a stable rate environment, and growing confidence under a pro-crypto Trump administration.
Bitcoin ETFs Continue to Attract Big Inflows
Bitcoin spot ETFs are still drawing heavy interest from institutions and retail investors. In May alone, these ETFs pulled in over $9 billion, with BlackRock’s IBIT leading the charge.
On May 22, a single-day inflow of $432 million showed that demand remains red hot. If the Fed moves ahead with the rate cut in July, it could be the final push Bitcoin needs to test or even break its all-time high of $111,970.
What to Watch Next
All eyes are now on the Fed’s July 29–30 meeting. If they confirm a rate cut:
- Expect renewed momentum across Bitcoin, Ethereum, and top altcoins.
- Market sentiment could turn sharply bullish.
- BTC could target fresh highs by late 2025.
However, if the Fed keeps rates steady, we might see consolidation or short-term corrections, especially if inflation proves stubborn or broader economic concerns grow.
Bottom line: A July rate cut could be the next big catalyst for a major crypto breakout. Stay tuned — July might be the month that redefines the 2025 bull run.
