The economic calendar set for this week suggests a period of high volatility for the markets, including bitcoin (BTC) and cryptocurrencies. Above all, the Federal Reserve's (Fed) interest rate decision, scheduled for Wednesday, December 18, unleashes this possibility.
According to expectations surveyed by CME Group, there is a 97.1% probability that a 25 basis point rate cut will be implemented. This would place them at a total of 425-450 basis points.
Thus, it would mark the third consecutive easing of monetary policy in the United States. The previous two were in September and August, starting a period of cuts for the first time since the pandemic.
Markets reacted positively to the previous cuts, so it is expected that optimism will spread if this trend continues this week. Furthermore, since only a 25 basis point cut is anticipated, it reflects expectations that the economy does not require a hard measure to boost itself.
According to the analytics company Santiment, the outlook suggests that the U.S. and global economies could thrive with lower interest rates. Therefore, as reported by CriptoNoticias, it sees a positive scenario in place for the prices of bitcoin and cryptocurrencies.
"Cryptocurrencies, closely linked to the stock markets, have already reacted positively and could gain even more once the cuts are confirmed next week," says Santiment.
