Next week, the Federal Reserve is likely to cut interest rates for the fourth time this year. The market expects a 25 basis point rate cut with a probability of 94.7%, which is almost certain. If the rate cut is implemented, the federal funds rate target will be lowered accordingly. Given that it is currently between 4.5% and 4.75%, assuming a 25 basis point rate cut next week, the upper limit of the Federal Reserve's main interest rate target is expected to remain at 4.5% throughout 2025.
From the perspective of Treasury yields, the yields of two-year, ten-year and thirty-year U.S. Treasury bonds may reach 4.55%, 4.65% and 4.8% respectively at the end of 2025, all higher than the expected level in the first quarter of next year.
This series of changes reflects the market's expectations for the Fed's monetary policy adjustments and the prediction of future interest rate trends. Its subsequent impact will gradually emerge in multiple fields such as macroeconomics and financial markets.
Summary: Good for the crypto market, don't panic❗❗