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<div class="key-points-section">
 <strong>Key Points:</strong>
 <ul>
  <li>BlackRock strategists foresee limited Fed rate cuts by 2026.</li>
  <li>175 basis point cuts delivered, nearing neutral rate.</li>
  <li>Limited cuts possible unless labor market worsens.</li>
 </ul>
</div>
<p>BlackRock strategists Amanda Lynam and Dominique Bly predict limited Federal Reserve rate cuts in 2026, aligned with reaching neutral rates, according to their December 18, 2025 report.</p>
<p>This forecast could affect yield-sensitive assets like Bitcoin and Ethereum amid credit market shifts, despite no direct cryptocurrency market reaction confirmed.</p>
<h2 id="blackrock-s-prediction-on-fed-rate-cuts">BlackRock's Prediction on Fed Rate Cuts</h2>
<p>BlackRock strategists Amanda Lynam and Dominique Bly released a <strong><a href="https://coincu.com/analysis/fed-rate-cuts-impact-crypto-3/" rel="noopener noreferrer nofollow">report</a></strong> noting that the Fed has cut rates by 175 basis points. This action points towards the neutral rate zone, indicating limited cuts unless the <strong>labor market deteriorates significantly</strong>. Amanda Lynam, Strategist, BlackRock, mentioned:</p>
<p><strong>Rate adjustments</strong> have influenced credit and financial markets, with potential implications for yield-sensitive assets. The strategists indicate that further reductions might be restricted due to the <strong>neutral rate proximity</strong> and economic conditions. For more insights on this, you can refer to the <a href="https://finpolicy.georgetown.edu/wp-content/uploads/2025/06/The-Explosive-Growth-of-Private-Credit.pdf" rel="noopener noreferrer nofollow">rise of private credit and its implications</a>.</p>
<blockquote>
 "With 175bp of cuts delivered by the Federal Reserve since September 2024, the Fed Funds rate (3.5-3.75%) is already approaching some estimates of neutral."
</blockquote>
<h2 id="bitcoin-s-position-amidst-fed-s-limited-rate-cut-outlook">Bitcoin's Position Amidst Fed's Limited Rate Cut Outlook</h2>
<p><strong>Did you know?</strong> The Federal Reserve's rate cut trajectory often influences cryptocurrency market volatility, showing significant price fluctuations during economic policy shifts.</p>
<p>According to <a href="https://coinmarketcap.com/" rel="noopener noreferrer nofollow">CoinMarketCap</a>, Bitcoin (BTC) is currently priced at $87,264.39 with a market cap of $1.74 trillion, holding a 59.10% market dominance. The 24-hour trading volume fell by 25.57% to $31.72 billion. Bitcoin’s price changed by -0.52% over 24 hours and -21.95% over 60 days.</p>
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-1314-UTC-on-December-24-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-1314-UTC-on-December-24-2025file.jpeg" alt="bitcoin-daily-chart-5271"> </a>
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  Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 13:14 UTC on December 24, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
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<p>The <a href="https://www.coincu.com/" rel="noopener noreferrer nofollow">Coincu research team</a> suggests that <strong>limited interest rate cuts</strong> could stiffen <strong>financial conditions</strong> and tighten liquidity, possibly resulting in fluctuations across credit markets. Historical analysis highlights these economic shifts' potential to <strong><a href="https://coincu.com/markets/us-inflation-data-federal-rate-cuts/" rel="noopener noreferrer nofollow">amplify market volatility</a></strong> in various blockchain-driven financial instruments.</p>
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    <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>
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</figure> <a href="https://coincu.com/uncategorized/federal-rate-cuts-2026/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Limited Fed Rate Cuts Predicted by 2026, Report Finds

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