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.