Bank of America analysts are forecasting the Federal Reserve will cut rates in December, followed by two additional cuts throughout 2026. This dovish outlook suggests a gradual easing cycle as inflation pressures potentially moderate.

For crypto markets, Fed rate cuts typically mean cheaper capital and increased risk appetite. Lower borrowing costs could drive more liquidity into digital assets, though the pace matters—gradual cuts might limit explosive rallies compared to aggressive policy shifts.

The timing is interesting. If December's cut materializes, we're looking at a potential tailwind heading into year-end and beyond. But two cuts across an entire year? That's pretty measured. Markets might already be pricing this in, so the real question is whether reality matches expectations or throws us a curveball.