Crypto Market is trading for new optimism as investors bet on deeper monetary easing from the US Federal Reserve this month.
A September 8 report from Reuters said Standard Chartered was expected to cut the Fed by 50 basis points at its policy meeting in September.
The decline in labor data changes the outlook
The change in expectations showed that non-farm payroll in August had only 22,000 jobs, far below the 75,000 forecast, before unemployment rose to 4.3%, breaking out of the 15-month range. Standard Chartered said the labor market was “from solid to soft within six weeks,” opening the door to more aggressive cuts.
Bank of America has also adjusted its forecasts to forecast two quarterpoint cuts in September and December. However, Standard Chartered suggests that the September move could be a one-off move, noting that “sticky inflation and fiscal easing” could limit further cuts this year.
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The market is currently priced almost certain cuts at upcoming Federal Open Market Committee meetings, with traders waiting closely for a September 17 confirmation of Federal Reserve Chairman Jerome Powell.
Crypto Market Sentiment lifts with rate cut bets
For digital assets, the loose monetary policy outlook has encouraged bullish sentiment. Lower rates will spike the yield curve and reduce borrowing costs. Both create favorable terms for Bitcoin (BTC) and other risky assets.
This optimism appears to be reflected in the derivatives market. High demand for call options in December 2025 has led to an increasing number of open interest in Bitcoin options. This positioning means that traders are confident that the macro terms can push Bitcoin to a new high, in addition to predicting additional profits.
The interest rate cut debate came amid widespread concerns about the Fed’s independence, as the Department of Justice recently issued a subpoena in relation to a mortgage fraud claim against Fed Governor Lisa Cook. Scrutiny raises more questions about the direction of Fed policy.
With liquidity improving and risk appeals expected to return, investors see the Fed’s September decision as a potential catalyst for the next phase of crypto market momentum.
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