Fed Rate Cut Odds Hit 98% — Crypto Market Recovery Ahead?

Why Lower Interest Rates Matter for Crypto

The Federal Reserve’s interest rate decisions have a direct impact on risk assets like Bitcoin, Ethereum, and altcoins. When rates are high, borrowing becomes expensive, and investors typically flock to safer assets like bonds.

However, lowering interest rates usually has the opposite effect:

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  Increased liquidity: Cheaper borrowing leads to more cash in circulation.
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  Risk-on appetite returns: Investors seek higher returns in assets like crypto.
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  Weaker dollar: Often boosts Bitcoin and other non-fiat stores of value.

With the Fed now almost certain to ease policy, the crypto market may be set for a strong rebound.

A Possible Turning Point After the Crash

Following last week’s shocking crash—where top coins like $LINK, $ADA, and $ATOM lost up to 80%—this rate cut news could mark a turning point. Traders are already positioning for a bounce, anticipating that the flow of new capital will fuel the next bullish leg.

While nothing is guaranteed, the combination of oversold conditions and a likely Fed pivot may create ideal conditions for a crypto recovery in Q4.