📢📢Hot news from Odaily Planet Daily! Traders in the US interest rate options market are making a bold bet, predicting that there will be up to 300 basis points of interest rate cuts in the next nine months (12 rate cuts calculated at the conventional 25BP range)! 🔥🔥
Positions in the options market over the past three trading days show that these bets will benefit if the Fed cuts interest rates to a low of 2.25% in the first quarter of 2025. But unless the US economy suddenly falls into recession, this outcome seems unlikely. 😮😮
The market expects the Fed to cut interest rates by about 75 basis points during this period, which is an aggressive bet. Fed officials recently predicted only a 25 basis point rate cut by the end of this year and a total of 125 basis points by the end of 2025. Now, some people are also starting to increase their bets to hedge against the consequences of tail risks, such as rapid and extreme rate cuts. 💸💸
In this volatile market, Bitcoin’s stability and growth potential may become a new favorite for investors. Let’s wait and see! 🚀🚀