US Dollar Weakens as Fed Poised for Third and Final 25bp Rate Cut of 2025, Powell Signals 2026 Pause

COINOTAG News reports that the US dollar weakened as investors awaited the Federal Reserve policy decision due later this week, a development that could influence risk appetite across cryptocurrency markets.

Analysts at Deutsche Bank see a continued easing path, with a projected 25 basis-point rate cut in 2025. They caution the vote may not be unanimous, underscoring a cautious bias among policymakers.

Market watchers expect the Powell briefing to crystallize the central bank’s signal: rate cuts beyond early 2026 remain conditional, suggesting a measured pace and a possible pause after a near-term cut.

For cryptocurrency participants, clearer guidance on policy trajectory could bolster liquidity and risk sentiment, potentially supporting BTC and broader digital assets as investors reassess macro risk in a tightening cycle.