Analysis: The Federal Reserve's interest rate cut expectations have been priced in by the market, and this adjustment will have a limited short-term impact on cryptocurrency prices.

According to ChainCatcher and reported by Decrypt, based on CME Federal Reserve Watch data, the market widely expects the Federal Reserve to announce a 25 basis point interest rate cut to a range of 4.25%-4.50% at this week's FOMC meeting, marking the second rate cut since November, with current expected probability as high as 93.4%.

Luis Buenaventura, the cryptocurrency director at GCash, stated that since the expectations of an interest rate cut have already been priced in by the market, the direct impact of this policy adjustment on cryptocurrency prices will be relatively limited. Historical data shows that when Bitcoin experiences a 50% increase within 60 days, there is about a two-thirds probability of achieving an additional 35% increase in the following two months.

Neal Wen, the Global Business Development Director of Kronos Research, added that in a low interest rate environment, institutional investors tend to view crypto assets as an alternative to traditional investments. Presto Labs research analyst Min Jung pointed out that the market focus has shifted to the policy speech content and the latest economic forecast dot plot from Federal Reserve Chairman Powell, which will provide important guidance for the direction of monetary policy in 2025.