The Federal Reserve is anticipated to reduce interest rates by a total of 0.75% in 2025, with a 0.25% cut expected at the upcoming meeting and an additional 0.5% reduction by year-end. Analysts, including CoinShares' James Butterfill, predict these cuts will occur in October and December. Market indicators and platforms like Polymarket align with this forecast. Despite the expected rate cuts, the impact on cryptocurrency prices remains unclear. Kraken's global economist, Thomas Perfumo, highlighted the macroeconomic environment as a key influence in the current crypto cycle. Bitcoin has declined over 10% in recent weeks, affected by trade war concerns and the liquidation of leveraged positions.