The post Federal Reserve’s Rate Cuts Influence Crypto Prospects appeared on BitcoinEthereumNews.com. Key Points: Kevin Hassett discusses Federal Reserve’s abilityThe post Federal Reserve’s Rate Cuts Influence Crypto Prospects appeared on BitcoinEthereumNews.com. Key Points: Kevin Hassett discusses Federal Reserve’s ability

Federal Reserve’s Rate Cuts Influence Crypto Prospects

Key Points:
  • Kevin Hassett discusses Federal Reserve’s ability to cut rates further.
  • Potential positive effects on Bitcoin and Ethereum predicted.
  • Market reactions vary, transparency from the Fed is sought after.

White House National Economic Council Director Kevin Hassett, in a CNBC interview on December 18, criticized the Federal Reserve’s interest rate transparency while noting potential for further cuts.

Anticipated rate reductions could alleviate monetary strain on cryptocurrencies like BTC and ETH, potentially boosting their values in the financial markets.

Federal Reserve’s Potential Rate Cuts and Crypto Outlook

Kevin Hassett’s statement during a CNBC interview highlighted the potential for further interest rate cuts by the Federal Reserve, emphasizing the need for more transparency. In past instances, similar actions have impacted risk assets like BTC and ETH positively.

Financial markets are likely to see shifts as investors anticipate the Fed’s decisions. Historically, cuts have supported macrosensitive assets such as Bitcoin and Ethereum. Interest rate reductions often ease monetary pressure on risk assets, enhancing market appeal for cryptocurrencies.

Community and market reactions to Hassett’s remarks emphasize the ongoing debate about Federal Reserve policies. “The Federal Reserve has significant room to cut interest rates further and needs to improve transparency,” said Kevin Hassett. Transparency is being urged to ensure clarity in financial strategies, although immediate major responses from key financial leaders or institutions are yet to be observed.

Historical Rate Cuts and Their Impact on Bitcoin

Did you know? In 2019, the Federal Reserve’s rate cuts led to Bitcoin’s rise from approximately $4,000 to over $13,000 by the year’s end. Interest rate adjustments have historically influenced cryptocurrency valuations.

[CoinMarketCap](https://coinmarketcap.com/) reports that Bitcoin (BTC) is currently priced at $88,106.98, with a market cap of formatNumber(1758947924074, 2) trillion. Its 24-hour trading volume is formatNumber(48938831344, 2) billion, showing a 42.1% change. Despite slight recent price declines, BTC maintains a market dominance of 59.23%.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:42 UTC on December 18, 2025. Source: CoinMarketCap

Insights from Coincu Research Team suggest that Federal Reserve transparency could lead to steadier cryptocurrency markets. Historical trends indicate that rate cuts could continue enhancing macro-sensitive assets like BTC and ETH, while delineating clearer financial strategies through increased transparency will be pivotal.

Source: https://coincu.com/markets/federal-reserve-cuts-crypto-impact/

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