Probability of Fed Rate Cuts in September Reaches 97.6%
Anticipation for Federal Reserve rate cuts in September is high among crypto investors, historically linked to bull runs in risk assets like Bitcoin. As the FOMC meeting approaches, investor sentiment has shifted positively.
Probability Climbs Above 97%
- The CME Watch Tool indicates a 97.6% probability of a rate cut in September.
- This marks an increase from a previous low of 75% at the end of August.
- There is only a 2.4% chance the Fed will maintain current rates, with no possibility of a rate hike this month.
Potential Crypto Market Reaction
- A rate cut could boost both stock and crypto markets by increasing liquidity and driving up prices.
- Investor caution is advised due to the potential for "buy the rumor, sell the news" scenarios.
- Social media conversations about rate cuts have surged, indicating bullish sentiment but also the risk of disappointment.
- Investors should prepare for potential volatility around the FOMC meeting.
