Goldman Sachs expects three rate cuts to come. Will the cryptocurrency market face a breakthrough or a dilemma?

Goldman Sachs predicts that the Federal Reserve will cut interest rates three times in the remaining time of 2025, which seems to be a good opportunity for cryptocurrencies. The decrease in borrowing costs may mean that digital assets such as Bitcoin and Ethereum will receive more attention. However, things may not be smooth sailing. The possibility of increased regulatory scrutiny and market volatility may complicate the situation. Goldman Sachs' prediction is quite bold. It is apparent that the Federal Reserve will cut interest rates three times before December 2025. This will be a significant shift, especially as central banks around the world have already begun responding to signs of economic slowdown and easing inflation. The rate cuts may attract more attention to cryptocurrencies, especially against the backdrop of companies starting to pay wages in digital currencies. The "Great Resignation" has indicated that workers are more interested in jobs that offer cryptocurrency compensation, and this trend is likely to continue with the decrease in borrowing costs. Historically, the cryptocurrency market tends to rise during periods of loose monetary policy. Rate cuts mean that the cost of holding speculative assets lowers, making cryptocurrencies more attractive. Bitcoin often rebounds after the Federal Reserve releases a dovish signal, and Goldman Sachs' predicted three rate cuts may pave the way for a big rebound in 2026. However, caution is still needed regarding the potential strengthening of regulatory scrutiny, which could complicate matters. As the cryptocurrency market evolves, compliance will become increasingly important. The EU's Markets in Crypto-Assets (MiCA) framework has already implemented strict transparency and operational supervision requirements, which may be challenging for small businesses. The complexity of regulatory compliance and the volatility of cryptocurrencies pose challenges for companies considering adopting cryptocurrency for wage payments. They need to make efforts to ensure compliance and avoid legal disputes. The upcoming rate cuts may also lead to increased market volatility as investors react to the changing economic environment. To address this, diversifying investments beyond Bitcoin may be a wise move. Stablecoins appear to be a popular choice for businesses looking to mitigate the risk of cryptocurrency wage fluctuations. With the growth of cryptocurrency wage payments, understanding the adoption of stablecoins will be key in navigating the future of compensation in the digital economy era. In conclusion, Goldman Sachs' predicted rate cuts may create a more favorable environment for cryptocurrency investments, especially against the backdrop of companies considering adoption of cryptocurrency-based compensation solutions. However, regulatory scrutiny is definitely a factor to watch out for. Looking ahead to 2025, the relationship between monetary policy and cryptocurrencies will play a crucial role in shaping the future of digital assets.