CME “FedWatch” Predicts Low Chance of Fed Rate Cut for May – Coincu

The latest CME “FedWatch” data, reported by BlockBeats News, shows a mere 10.4% probability for a rate cut by the Federal Reserve in the upcoming May meeting.

This data suggests the central bank is not expected to adjust rates in the near term, maintaining a significant focus on controlling inflationary pressures. Despite the low probability of a rate adjustment, crypto markets saw notable activity, with $299 million liquidated in the past 24 hours.

CME FedWatch Analysis and Market Reactions

The CME Group’s “FedWatch” tool, a pivotal resource for gauging Federal Reserve policy expectations, assesses probabilities using Fed Funds futures markets. As of April 26, a rate cut holds limited likelihood at 10.4%, reflecting the central bank’s focus on price stability. Current sentiment leans towards maintaining the status quo, as indicated by an 89.6% probability of no rate change.

Crypto markets are reacting to such cautious policy signals with increased volatility, underscored by asset liquidations, highlighting investors’ sensitivity to potential shifts in monetary policy. Data shows $299 million in crypto liquidations over the past 24 hours, reflecting heightened volatility likely tied to monetary policy expectations.

“The latest update indicates a 10.4% probability of a 25 basis point rate cut by the U.S. Federal Reserve at the May meeting.” — CME Group Representative, CME Group Source

Bitcoin Market Dynamics and Historical Context

Did you know? The Federal Reserve has not cut rates in May since 2018.

Bitcoin, maintaining dominance at 63.29%, reflects recent market flux with a 24-hour price decrement of 0.85%. Its current price of $94,293.15 emerges from a high market cap of $1.87 trillion, reveals CoinMarketCap. Trading volume faced a 41.93% decline, illustrating transactional adjustments amid broader economic expectations.

Insights from Coincu’s research team indicate that the crypto market’s reaction to Fed policy forecasts often manifests through heightened volatility and investment recalibration. Analysts emphasize the impact of regulatory frameworks and technological advancements, indicating these factors may shape asset trajectories alongside official monetary cues.