Goldman Sachs Predicts Multiple Fed Rate Cuts in 2025
- Goldman Sachs forecasts Fed rate cuts in 2025.
- Potential bullish sentiment in crypto markets.
- Rate cuts could benefit BTC and ETH prices.
Goldman Sachs, led by Jan Hatzius, forecasts three Federal Reserve rate cuts in 2025, hinting at a significant dovish shift in monetary policy.
This projection is expected to spur bullish momentum in cryptocurrency markets, potentially increasing the appeal of assets like Bitcoin and Ethereum as the opportunity cost for holding them decreases.
Goldman Sachs has forecasted multiple Federal Reserve interest rate cuts in 2025, expecting three reductions due to softening labor market data. The prediction is based on weaker-than-expected tariff impacts on inflation.
The research, led by Chief Economist Jan Hatzius, anticipates cuts in September, October, and December 2025. This shift to a dovish stance marks a significant macroeconomic change.
The potential rate cuts could boost bullish sentiment in cryptocurrency markets. Historically, lower rates lead to increased capital allocation in digital assets like Bitcoin and Ethereum.
Analysts project that these interest rate changes could rally Bitcoin to $70,000–$75,000 and Ethereum to $4,500 by late 2025, should the forecasts actualize.
“Goldman Sachs’ economic research team…forecasts three 25bp Fed cuts in 2025, citing persistent labor softness and diminishing inflationary impacts from tariffs. This marks a shift toward a pronouncedly dovish outlook.” — Jan Hatzius, Chief Economist, Goldman Sachs [Goldman Sachs Institutional Memo]
No official statements have been made on social media by leading crypto figures regarding these forecasts. Institutions such as Citigroup and Wells Fargo align with similar dovish views.
Historically, aggressive Fed rate cuts have led to significant gains in BTC and ETH. Crypto communities express optimism on platforms like Twitter and Discord about potential increases in market liquidity.
