Coinbase anticipates 2 interest rate cuts that will boost bitcoin

BY KrypTimes
August 21, 2025
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Managers of Coinbase, a U.S. exchange of bitcoin (BTC) and cryptocurrencies, project that the U.S. Federal Reserve (FED) will make two interest rate cuts in September and October.

In this regard, Matías Alberti, Country Manager of Coinbase Argentina, said in a statement sent to CryptoNoticias: From Coinbase, we continue to point to two cuts of 25 basis points in September and October, which could reactivate the momentum of the cryptocurrency ecosystem.

The executive stressed that the projection remains firm despite the fact that the macroeconomic context presents mixed signals. On the one hand, the consumer price index CPI) in the United States fell, but on the other hand, the producer price index (PPI) rose, facts that were reported to be CryptoNotics.

Inflation in July was 2.7 per cent year-on-year (expected to be 2.8 per cent), while the underlying CPI, which excludes energy and food, was 3.1 per cent in the last 12 months (expected to be 3.0%).

For its part, the IPP, which measures how much the prices paid by companies to produce goods and services rise, skyrocketed far above expectations: it was 3.3% per year, 0.8 per cent above estimates.

These indicators will be analysed at the next meeting of the Fed’s Open Market Operations Committee (FOMC), to be held on 17 September.

Currently, the interest rate is in the range of 4.25 to 4.50%, so two cuts of 25 basis points in September and October could be between 3.75% and 4.00%, a level that, according to Coinbase, could reactivate the ecosystem momentum of digital assets.

This is because when there are interest rate cuts, the cost of borrowing drops, and there is more liquidity in the system. That’s when investors’ appetite for assets considered risky, such as bitcoin (BTC) and cryptocurrency, is awakened.

It should be clarified that Coinbase’s sentiment is similar to that of users of Polymarket, the cryptocurrency betting platform, who argue that the Fed will cut by at least 25 points in September.