$ETH With US equities suffering their worst back-to-back losses since the 2008 crisis and bond yields collapsing, traders are now pricing in up to 125 basis points of rate cuts by the end of 2025. There's a 40% chance the Fed could slash rates within days — even before its next scheduled meeting on May 7.

Bob Michele, global head of fixed income at JPMorgan Asset Management, warned that the Fed cannot afford to wait for the financial system to break. “We cannot believe the Fed will wait until something breaks before responding,” he said.

Impact on Crypto Market: Bullish Momentum Returns

The crypto market has responded sharply to expectations of Fed intervention. Bitcoin and other major cryptocurrencies rallied over the weekend as investors bet that lower interest rates and increased liquidity will drive demand for alternative assets like crypto.