Bank

Cryptocurrency

Bitcoin

Read

Reserve

<div class="key-points-section">
 <b>Key Points:</b>
 <ul>
  <li>US Federal Reserve expected to cut rates modestly despite rising inflation concerns.</li>
  <li>Inflation pressures from tariffs to impact Treasury yields.</li>
  <li>10-year US Treasury yield projected to reach 4.60% in six months.</li>
 </ul>
</div>
<p>Deutsche Zentral-Genossenschaftsbank predicts the Federal Reserve will trim interest rates by 25 basis points this December, as detailed in an analyst report by Christian Lenk on November 18.</p>
<p>Such rate cuts, amid rising inflation due to tariffs, are expected to increase 10-year US Treasury bond yields, impacting risk assets, including cryptocurrencies like Bitcoin and Ethereum.</p>
<h2 id="fed-s-rate-strategy-amid-inflation-challenges">Fed's Rate Strategy Amid Inflation Challenges</h2>
<p><strong>Christian Lenk of Deutsche Zentral-Genossenschaftsbank forecasts the Federal Reserve will cut interest rates by 25 basis points come December.</strong> These projections anticipate further reductions in March and June 2025, with a focus on cautious actions amidst rising inflation concerns. Rising tariffs and a significant government deficit are expected to fuel US inflation, influencing these decisions. <strong>This scenario leads to expectations of 10-year US Treasury yields increasing to 4.50% within the next three months and 4.60% over six months.</strong></p>
<p><strong>Market participants are weighing these potential movements’ impacts on financial markets and long-term yields.</strong> Such predicted interest rate adjustments and associated yield increases may provoke cautious sentiments and strategic shifts by investors in both traditional and <a href="https://annualreport.dzbank.com/sites/default/files/2025-03/DZBANK_Group_AR2024_outlook.pdf" rel="noopener noreferrer nofollow">cryptocurrency markets</a>. Insights from DZ Bank underline broader market apprehension over inflation pressure and its dampening effect on monetary easing. <strong>Chief Economist Michael Holstein and Christoph Kutt of DZ Bank note that US monetary policy is likely to remain restrictive, impacting growth prospects.</strong> Michael Holstein commented, “However, the growth could be short-lived. Trade tariffs usually lead to retaliatory action. This will drive up inflation and unsettle consumers.”</p>
<p><strong>Historically, rate changes can lead to volatility within financial markets, including cryptocurrencies, experiencing direct effects from monetary shifts.</strong> While asset reallocation might occur from risk-on assets like Bitcoin, historical trends indicate varied impacts on different financial sectors. <strong>Lenk and colleagues voice concerns over potential retaliatory trade measures spurring inflationary pressures, implications that align with their financial outlook.</strong></p>
<h2 id="inflation-s-ripple-effect-on-cryptocurrency-markets">Inflation's Ripple Effect on Cryptocurrency Markets</h2>
<p style="background-color: #222222; color: #ffffff; padding: 10px; border-radius: 5px;"><strong>Did you know?</strong> On previous occasions, such as 2022-2023, unexpected inflation increases paired with policy adjustments triggered notable outflows from cryptocurrencies, illustrating sensitive market dynamics with monetary policy changes.</p>
<p>Bitcoin (BTC) currently stands at $90,636.08 with a market cap of $1.81 trillion, holding 58.34% market dominance as per CoinMarketCap. Recent 24-hour trading volume reached $114.80 billion, showing a 46.87% increase. BTC faces a 5.25% price drop over the past day, with longer-term declines of more than 15% in the last 30 and 60 days. The circulating supply amounts to 19.95 million out of a 21 million cap, updated at 08:07 UTC on November 18, 2025.</p>
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/11/Bitcoin-daily-chart-on-0807-UTC-on-November-18-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/11/Bitcoin-daily-chart-on-0807-UTC-on-November-18-2025file.jpeg" alt="bitcoin-daily-chart-4458"> </a>
 <figcaption>
  Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 08:07 UTC on November 18, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer">CoinMarketCap</a></em>
 </figcaption>
</figure>
<p><a href="https://www.bundesbank.de/en/tasks/monetary-policy/economic-analyses/forecasts-625856" rel="noopener noreferrer nofollow"><strong>Coincu research</strong></a> highlights potential persistence in financial memory implications, suggesting traditional yield alternatives' impact on digital markets, especially in risk repricing. Leveraging inflationary patterns and fiscal policy direction, <strong>experts reveal potential changes in asset preference affecting the crypto landscape in alignment with expected yield increases.</strong> Analysis indicates that, while certain loss trends may recede, underlying financial principles driving Treasury yields hold significant implications for broader market stability.</p>
<figure class="wp-block-table">
 <table class="has-luminous-vivid-orange-color has-text-color has-link-color has-fixed-layout">
  <tbody>
   <tr>
    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
   </tr>
  </tbody>
 </table>
</figure> <a href="https://coincu.com/uncategorized/fed-rate-cuts-inflation-rise-impact/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Federal Reserve Forecasts Limited Rate Cuts As Inflation Rises

Table of Contents

Coincu

Other articles published on Nov 18, 2025

Join our free newsletter for daily crypto updates!