Rating agencies are signaling that the Federal Reserve might deliver not one, but two rate cuts during the first half of 2026. If this scenario plays out, the upper band of the Fed funds rate would settle around 3.25%, reflecting a more dovish stance than currently priced in by markets.

This potential shift in monetary policy could reshape market dynamics. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like Bitcoin and other cryptocurrencies, potentially boosting demand. Meanwhile, traditional fixed-income investments become less attractive, pushing institutional capital toward alternative assets.

For traders and investors in the crypto space, keeping tabs on Fed policy expectations matters. Even slight changes in rate cut probability can trigger significant price movements across digital assets. The next six months will be crucial in determining whether these forecasts materialize or get revised.