Key Market Indicators
- •The probability of a Federal Reserve rate cut at the December meeting has surpassed 50%.
- •This development could significantly influence the market dynamics of cryptocurrencies like Bitcoin and Ethereum.
- •The crypto market is closely observing updates in U.S. monetary policy for potential trading opportunities and risks.
Monetary Policy Shift
The probability of a Federal Reserve rate cut at the December meeting has surged beyond 50% following recent weak jobs reports in the United States, according to CME Group data.
This shift could impact cryptocurrency markets, with Bitcoin and Ethereum historically reacting to such monetary policy changes by displaying heightened volatility and trading volume.
As of November 18, the U.S. Federal Reserve's probability of a 25 bps rate cut for December stands at 50% due to weak jobs reports, impacting financial strategies.
The decision-making body for this anticipated cut includes the Federal Open Market Committee (FOMC), chaired by Jerome Powell, with potential policy shifts affecting various economic sectors.
Market Implications
Immediate effects include shifts in global liquidity and funding costs, influencing both traditional and crypto markets. BTC and ETH values may fluctuate based on impending interest rate changes.
These financial maneuvers may provoke adjustments in risk appetite, affecting the dollar index and on‐chain activity within the cryptosphere.
Major digital assets exhibit sensitivity to Fed policy adjustments, with potential market volatility. Investors should monitor developments closely.
Analysts predict that historical market patterns suggest possible short‐term benefits for risk assets during such policy shifts. Crypto traders may seek buffer zones in stable assets or defensive positions.
Expert Commentary
Jerome Powell, Chair, Federal Reserve Board, - "The probability of a 25 bps rate cut at the December FOMC meeting is approximately 50%."