The Federal Reserve may cut interest rates for the first time this year. WEEX's in-depth forecast will explain the impact of June CPI for you

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On June 11, 2025, the U.S. Department of Labor released the latest inflation data: the May CPI year-on-year increase was 2.4%, far lower than the 3.9% in the same period of 2024, and marking the lowest annual growth rate in nearly three years. This data directly sparked market expectations for the Federal Reserve's first rate cut this year - a signal that cannot be ignored for global financial markets, especially the digital asset market.

Each of the past major bull markets was closely linked to "easing". As the rate cut signal flashes again, are digital assets ready to welcome a new market trend? WEEX trading platform blog combines the latest data and market trends to break down the deeper logic of this critical moment.

The Federal Reserve's "Turning" Signal Becomes Increasingly Clear

Looking at the Federal Reserve's language and economic data in recent months, the market is no longer debating "whether there will be a rate cut" but "when it will start". In early June, multiple Fed officials successively hinted that at least one rate cut this year has become a consensus. The 2.4% CPI annual growth not only alleviated "stagflation" concerns but also provided data support for initiating an easing cycle.

Interest rate policies directly affect capital costs and liquidity. When the Federal Reserve slows down rate hikes or even turns to rate cuts, "hot money" in the market will have a higher probability of flowing into risky assets, with digital assets often being the most elastic and imaginative category.

The "Prelude" of the Digital Asset Market: Waiting for the Ignition Point

From late 2024 to now, Bitcoin has been oscillating between $90,000 and $110,000, with significant bull and bear divergence. On one hand, ETF and institutional buying continue to push the coin price higher; on the other hand, the Federal Reserve's high interest rates and global geopolitical uncertainties have suppressed some funds' entry sentiment.

But now, multiple "key triggers" are gradually aligning:

Inflation slowing down

Rate cut expectations heating up

Bitcoin halving effect gradually emerging

Favorable policy in Asian markets (such as South Korean President Lee Jae-myung strongly supporting digital assets, Hong Kong taking an open attitude towards compliant trading platforms)

Under this intersection of "restart expectations" and "technical bull market", the market may usher in a decisive upward breakthrough.

U.S. Dollar Liquidity and Digital Asset Pricing Logic

Digital assets are highly volatile and have strong growth potential, but their macro pricing logic has long been closely linked to traditional finance. According to research by the WEEX trading platform blog, after the past three Federal Reserve rate cut cycles, BTC recorded significant increases within 3-6 months:

Such price behavior indicates that once interest rate policies enter an easing interval, digital assets will be more easily driven by incremental funds. Currently, BTC, ETH, and mainstream Altcoins are expected to welcome a "Davis double-click" valuation reassessment.

Institutional Fund Reallocation: What Are They Waiting For?

Between 2023-2024, many institutions began deploying digital assets through ETFs, custody services, and fund products. However, in the high-interest-rate era, such allocations were mainly focused on "defense" - such as BTC and some staking-type assets.

Once rate cuts begin, institutional risk appetite will recover, and more "long-term funds" will shift from traditional bonds and gold to high-growth targets. At that time, not only BTC and ETH will "take off" again, but quality DeFi, GameFi, AI+Crypto and other tracks may also be revalued.

WEEX trading platform blog believes: "We are standing at a crossroads where risk appetite is about to reverse. In the next few months, once interest rates show a substantive turn, market temperature will significantly increase."

WEEX Blog Perspective: Understand the Trend and Protect Users

At such a critical turning point, users often face two questions:

How to determine market launch?

How to reduce entry risks?

WEEX trading platform, as a global compliant trading platform focusing on user experience and risk control, not only releases professional market reports in real-time but also continuously optimizes product experience and fund protection mechanisms. For example:

The platform has a protection fund of one thousand BTC, with a publicly disclosed on-chain address, ensuring user trust;

Liquidity ranks among first-tier trading platforms, being one of the most stable platforms currently

Included by multiple well-known third-party rating websites and trading aggregation platforms, with good reputation and industry word-of-mouth... and so on

These measures may not "make you rich", but can provide users with a real sense of security during volatility - this is the most scarce confidence before a bull market starts.

History Will Not Simply Repeat, But Often Rhymes

2025 is likely to be a crucial turning point for global macro policies. Rate cuts are not just an interest rate event, but a signal of capital flow, market preferences, and asset revaluation. Digital assets are becoming one of the most explosive targets in this turn.

We may not be able to precisely predict the next high point, but we can gradually build our own judgment framework through macro data, market signals, and professional perspectives.

Whether the market trend arrives, time will prove everything. WEEX trading platform is willing to accompany every user, using professionalism and patience to navigate through bull and bear rhythms, walking more steadily.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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