The crypto market recorded volatility at the beginning of this week, dipping below $4 trillion in market cap, ahead of an important US FOMC meeting scheduled to take place on September 17.
The current general crypto market’s market cap is at $3.99 trillion, down by almost 2% in the past 24 hours.
However, the FOMC meeting set to take place this Wednesday could trigger a market rally, according to the latest predictions.
US Fed Expected to Cut Interest Rates – Chances Over 96%
According to the latest data from CME Group, there’s a 96.2% chance that the US Fed decides to cut the interest rate by 25 bps at the next FOMC meeting.
The current rate is at 425-450 bps, and the Fed is expected to cut it to 400-425 bps this week.
The Kobeissi Letter also pointed out in a recent X post that the Fed is set to cut rates for the first time this year due to a weak labor market, saying that this will be the third year since 1996 with Fed rate cuts while the S&P 500 is at record highs.
They explained that the US stock valuations have reached the highest level on record, citing data from Bloomberg, and this surpasses the Dot-Com bubble and the 1929 peak before the Great Depression. According to them, this might be justified as the world is experiencing the biggest tech revolution in more than 20 years.
Usually, the Fed slashes interest rates in a weak economy with stocks falling below record highs, and now, the US GDP is strong, while the economic state is debatable. Also, the US Core CPI came hotter for August at 3.1%.
According to them, the debate is whether to cut interest rates by 25 or 50 bps.
Throughout 2025, the US President, Donald Trump, has already urged the Fed Chair, Jerome Powell, to slash interest rates.
If the US Fed decides indeed to cut interest rates, this will be bullish for Bitcoin and the overall crypto market. Historically, whenever the Fed cut rates, Bitcoin rallied.
Bitcoin Rebounds Above $115,000 on September 15
After encountering price volatilty today, dropping to $114,000 levels, Bitcoin is currently trading above $115,000.
Despite today’s market volatilty, there are enough reasons to remain optimistic about Bitcoin’s trajectory and the overall crypto market.
Reasons for Crypto Market Optimism
Apart from the next FOMC meeting, which is expected to have bullish effects for Bitcoin, institutional interest also continues, with US BTC ETFs recording over $2 billion in inflows over the past two weeks.
On September 12, BTC ETFs recorded their fifth day of inflows above $642 million, according to data from SoSoValue.
Also, on September 12, Michael Saylor hinted at more Bitcoin accumulation by Strategy via an X post.
So, amidst continued accumulation, institutional interest, and upcoming rate cuts, the future for Bitcoin and the overall crypto market looks bright, and the original crypto could be on its way to break $120,000 again.
