The post Bitcoin and the crypto market braced as economist warns on the Fed cuts appeared on BitcoinEthereumNews.com.

Bitcoin and the broader crypto market are on edge as a top economist, whom Donald Trump nominated to the Federal Reserve in 2019, downplayed the impact of the upcoming interest rate cut.  Summary Stephen Moore, a top US economist, has downplayed the impact of the coming Federal Reserve interest rate cut. He believes that the main interest rate that the Fed should cut is the Interest on Reserves. The main potential catalyst for the crypto market will be the October ETF approvals. Bitcoin (BTC) price was trading at $112,645 at press time, up by 3.7% from its lowest level this month. Other top altcoins like Ethereum (ETH) and Solana were largely flat, while the market capitalization of all tokens remained at $3.9 trillion.  Crypto market on edge as Stephen Moore downplays impact of Fed cuts One of the main catalysts driving the crypto market this week is a recent statement by Jerome Powell at the Jackson Hole Symposium in which he signaled that the bank may consider cutting interest rates in the upcoming meeting in September, citing the weak labor market. The Fed rate cut everyone’s talking about might miss the real problem. Jerome Powell hinted at cutting rates and markets celebrated. But here’s what Wall Street isn’t telling you: The Federal Funds Rate cut won’t do much because barely any banks use it anymore.The REAL rate to… pic.twitter.com/QG0mBMecSJ — Stephen Moore (@StephenMoore) August 26, 2025 However, in a statement, Stephen Moore, a senior economist at the Heritage Foundation, said that the cut will not do much for the economy, and potentially for assets like stocks and cryptocurrencies. He argues that the Federal Reserve interest rate has largely become irrelevant now that banks don’t use it anymore. Instead, he argued that the bank should consider cutting the Interest on Reserve…

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Filed under: News - @ August 29, 2025 4:27 am