Bitcoin price surge expectations are mounting as Standard Chartered now projects a 50 basis point Fed rate cut this month. The crypto market rally has gained momentum following weak August jobs data, with bitcoin traders sentiment turning bullish amid growing rate cut speculation.
Bitcoin Price Surge Sparks Crypto Market Rally And Altcoin Spike
The bitcoin price surge has accelerated as Standard Chartered doubled its Fed rate cut forecast to 50 basis points for September’s meeting. August payrolls showed just 22,000 jobs added, well below the 75,000 forecast, while unemployment rose to 4.3%.
Standard Chartered said that:
“August labor market data has paved the way for a ‘catch-up’ 50 basis point rate cut at the September FOMC meeting, similar to what occurred at this time last year.”
Labor Market Weakness Fuels Bitcoin Price Surge
The crypto market rally has been driven by shifting Fed expectations as labor conditions deteriorate rapidly. Standard Chartered noted the labor market had shifted “from solid to soft in less than six weeks,” creating conditions for aggressive monetary easing.
Bitcoin traders sentiment has turned increasingly optimistic as lower rates typically benefit risk assets. The altcoin price spike reflects broader market enthusiasm for digital assets amid expectations of improved liquidity conditions.
Also Read: Dogecoin Outshines Bitcoin, Ethereum: Rate Cut Rally Kicking In?
Crypto Market Rally Gains Steam on Fed Pivot
Bank of America has revised its outlook, now expecting quarter-point cuts in September and December after previously forecasting no reductions this year. Markets are pricing a near-certain reduction at the upcoming FOMC meeting.
The bitcoin price surge reflects traders positioning for macro tailwinds from looser monetary policy. Open interest in Bitcoin options has increased substantially, with high demand for December 2025 call options signaling continued bullish bitcoin traders sentiment.
Standard Chartered added:
“After a 50-bps cut the market could take time to price in a slower subsequent pace of cuts.”
The altcoin price spike demonstrates how the broader crypto market rally is benefiting from improved risk appetite as borrowing costs decline.
Also Read: Bitcoin Reclaims $112,000: Are We in for a Big Weekend Rally?
