Anticipating a Major Bitcoin Jump as Federal Rate Cut Looms

The Federal Reserve’s decision regarding interest rates in December is in alignment with a 96% likelihood of a 25 basis points (bps) rate cut, as per the CME’s Fed Watch.

This is a significant rise from the 89% probability recorded in the last 24 hours, and the 65% probability a month ago.

Considering the lower inflation rates outside housing, and total inflation just above target due to housing costs, a rate cut by the Fed could enhance the attractiveness of non-traditional investments such as Bitcoin (BTC).

Historically, cryptos have become more appealing with lower rates as they decrease the attraction of yield-bearing assets and enable increased liquidity and institutional borrowing at lesser costs.

Thus, a potential rate cut could signal a bullish outlook for Bitcoin, suggesting a possible continuation of its rally as capital flows into the asset increase.

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