Another driver of the Fed's policy rate cuts is inflation, with the core PCE price index likely to get closer to the Fed's target in the second quarter. Citigroup expects U.S. GDP to grow at a slower-than-expected pace of just 2.6%, but expects the inflation measure to hit its 2% target for the quarter, a figure that could help solidify a rate cut of just 25 basis points from Fed officials next week.

Inflation targeting should have a positive impact on crypto assets, potentially leading to a short-term boost in prices as interest rates decline.