CME’s ‘Fed Watch’ Predicts Near-Certain Rate Cut in October

In October, CME’s ‘Fed Watch’ indicated a 99.4% probability of the Federal Reserve cutting interest rates by 25 basis points, reflecting prevalent economic expectations.

This projection could impact cryptocurrency markets, potentially increasing economic optimism and influencing asset valuation trends amid ongoing global financial adjustments.

Fed Watch Indicates 99.4% Chance of October Rate Cut

Significant changes in financial markets are likely considering such a high probability of monetary policy adjustments by the Federal Reserve. Crypto markets may respond to rate cuts as they often lower the risk-free rate, affecting asset valuations.

Key community reactions are limited as no direct quotes from major figures or official statements were available. Global markets and local crypto communities are closely watching the Federal Reserve’s impending decisions for potential impact on asset volatility.

Key community reactions are limited as no direct quotes from major figures or official statements were available. Global markets and local crypto communities are closely watching the Federal Reserve’s impending decisions for potential impact on asset volatility.

Bitcoin and Crypto Market in Context of Interest Rate Cuts

Did you know? Historically, major central bank announcements regarding interest rate changes have been a significant factor influencing cryptocurrency market sentiment and volatility. This is notably true when rates are expected to decrease, signaling potential increases in asset prices.

Bitcoin (BTC) currently trades at $107,812.26, with a market cap of $2.15 trillion, reporting a daily trading volume of $60.88 billion as of October 21. The cryptocurrency’s price has decreased by 2.76% in the past day, continuing its downward trajectory over the last 90 days with a cumulative decrease of 8.78%, according to CoinMarketCap.

Insights from Coincu’s research team suggest that potential rate cuts could provide an upward trajectory to the crypto market, as institutional investors may seek higher returns from riskier assets. Historically, crypto prices tend to rebound as interest rates decrease, although past performance does not always indicate future results.