Key Takeaways
- FedWatch data shows an 85% chance of a 25 bps December rate cut, which could boost the crypto market.
- Bitcoin’s price rebounded from last week’s lows of $80k, trading around $89k ahead of optimism for a third rate cut this year.
- The crypto market continues to struggle following a major market dump over the last few months, as both altcoins and Bitcoin suffer from low trading volume.
Following market uncertainties over the last few weeks, a minor price rebound in BTC from its low of $80k towards $89k has restored a measure of confidence in the market. However, the fear of a market crash still lingers among traders and investors who witnessed a significant market decline in recent months.
The news of a potential US Fed rate cut in December is making the rounds, following odds on this event rallying from 25% to 85% as crypto experts and traders speculate it could be bullish for the crypto market long-term after such a market crash.
According to on-chain data and speculators on the Polymarket platform who voted for a cut in the Fed rate in December, this could boost the price of Bitcoin and other crypto assets that have faced negative market sentiment.
Current market sentiment for altcoins hasn’t been encouraging, as the market saw an over 40% price crash despite attempts to rebound to the upside. The attempt by prices would take some time for many altcoins and the broader crypto market, but could see a significant rally if the Fed cuts rates in December.
If speculation about a US Fed rate cut proves true, what could we expect from the crypto market, and how could this impact the prices of many altcoins, including BTC?
Bitcoin Price Analysis Ahead of Fed Rate Cut
Source – BTC 1D Price Analysis Ahead of Rate Cut from TradingView
Despite BTC’s price holding its key demand zone of $80k, which led to a minor price rebound towards $89k for the first time in days, speculation of a price trend towards $107k, despite a lack of volume, has been sparked.
A lack of volume for Bitcoin and altcoins has resulted in low trading activities, but with the news of 85% odds being in favour of a US Fed rate cut in December, we could see the price of the crypto market gain strong volume to the upside, impacting the market positively due to an inflow of liquidity and increased trading activities for the market. Overall expectations remain optimistic ahead of the next Fed rate meeting.
FAQs
What happens when the Fed cuts rates?
A Fed rate cut is a big boost for the crypto market, as it could see bitcoin and altcoin prices rally, given the market’s current lack of confidence.
Are interest rates predicted to go up or down?
The chance of a Fed rate cut is 85% based on Polymarket data on events, as markets anticipate this news.
Is Solana expected to go up?
A short-term price gain for the crypto asset looks more ideal, considering the price has been in a downtrend for weeks now.
Related Read
