Nearly 67% of investors forecast an interest rate cut of 25 basis points in December when polled during the first week of November.
Only 45.9% of investors anticipate an interest rate cut at the next US Federal Open Market Committee (FOMC) meeting in December, amid declining market sentiment and a downturn in the cryptocurrency market.
The odds of a 25 basis point (BPS) interest rate cut in December were nearly 67% on Nov. 7, according to data from the Chicago Mercantile Exchange (CME) Group.
In September, several banking institutions forecast at least two interest rate cuts in 2025, with market analysts at investment banking company Goldman Sachs and banking giant Citigroup each projecting three 25 BPS cuts in 2025.
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Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more
