Attention crypto investors! The latest predictions show a high probability of the Federal Reserve cutting interest rates in November and December, according to the 'FedWatch' tool.
What does this mean?
- November: There is a 50.1% chance of a 25 basis point cut.
- December: A more aggressive cut is expected, with a 50% probability of a 75 basis point reduction.
Impact on cryptocurrencies
When rates go down, risk assets like cryptocurrencies tend to go up as investors look for higher returns. It's the perfect time to keep an eye out for opportunities in the crypto market.
Example
Think of rates as the cost of borrowing money. If the cost goes down (i.e. rates fall), people and businesses can borrow more cheaply and invest more. In the crypto world, more money is flowing into assets like Bitcoin or Ethereum as people are looking for higher returns.
Conclusion
If rate cuts materialize, it could be a boost for the crypto market! Keep an eye on these Fed decisions as they could signal an uptrend for your favorite cryptos.
