Fed Rate Cut Odds at 67.3% for December Fuel Crypto Rally
CME FedWatch shows a 67.3% Fed rate cut probability by December and a 32.7% chance of unchanged rates. Looking ahead to January, the odds of a cumulative 25 bps Fed rate cut stand at 55.8%, and of a 50 bps reduction at 22.3%. The rising Fed rate cut odds reflect market expectations for easing monetary policy amid moderating inflation. Crypto traders should monitor shifts in Fed rate projections, as past rate cuts have sparked short-term rallies in BTC and other altcoins. Upcoming CPI data and Fed officials’ comments will be key indicators influencing risk asset flows and trading strategies.
Bullish
Rising Fed rate cut odds signal looser monetary policy and increased liquidity, historically prompting short-term rallies in Bitcoin and altcoins. Crypto traders may see inflows as borrowing costs fall, lifting market sentiment. While long-term trends hinge on economic data and policy decisions, the immediate impact is likely bullish for risk assets.