Key Insights
- •The much-anticipated 25 bps Fed rate cut is expected to create headlines in the crypto market news column.
- •The latest US PCE inflation further cemented bets over a dovish move by the US Fed.
- •Analysts expect the crypto prices to pump if the Fed Chair hints at a softer move ahead.
In the latest crypto news, investors are eagerly awaiting the upcoming US FOMC interest-rate decision, scheduled for December 10.
In addition, the job openings data for October, scheduled for December 9, will also be closely evaluated.
Notably, the broader market is anticipating another 25 bps Fed rate cut at the upcoming gathering of the US Federal Reserve.
In that case, it can lead up to a strong rally for the broader market, including crypto prices.
Meanwhile, the crypto market recorded volatile trading since October 10, with soaring tariff tensions between the US and China.
Since then, the digital assets have mostly stayed in the red, with BTC price falling to as low as $80,000 amid a broader selloff.
On the other hand, market experts have also suggested that the volatility will persist in the near future.
Considering all these factors, the Fed rate cut is expected to provide the much-needed year-end boost to the crypto prices.
Crypto Market News: Fed Rate Cut in Focus
The delayed US PCE index data has made headlines in the crypto news column, as investors eagerly awaited the data earlier this week.
According to the US Commerce Department data, US PCE inflation for September came in at 2.8%, down from the market expectations of 2.9%.
On the other hand, the monthly surge comes in at 0.3%, unchanged from the prior month and in line with market expectations.
On the other hand, the Core PCE inflation, which excludes food and energy prices, was 2.8% in September, down from 2.9% in the prior month.
The core PCE inflation ticked up 0.2% monthly, with no change from the prior month’s reading.
This has further boosted optimism over a potential Fed rate cut at the upcoming gathering of the central bank officials.
In addition, this might also help drive crypto prices higher in the near future. Market commentator Bull Theory said that “with inflation falling and growth slowing, the Fed has no reason to keep rates high.”
On the other hand, he noted that the development will be positive for the financial sector, liquidity, and risk assets like the crypto market.
Fed Chair Jerome Powell to Impact Crypto Prices
Apart from the US FOMC this week, another major event will be Fed Chair Jerome Powell’s press conference.
This event is also expected to make headlines in the crypto news segment due to soaring macroeconomic concerns in the broader financial market.
Notably, a Fed rate cut of 25 bps is expected in December. The CME FedWatch Tool showed 87% odds of a rate cut in December, which caught the eyes of traders.
Despite that, crypto market participants will be keeping close track of Fed Chair Jerome Powell’s comments.
Any hawkish indication from the Fed may dampen broader market sentiment while triggering a selloff in the crypto market.
Meanwhile, analyst Klarck said that a 25 bps Fed rate cut would provide a boost to crypto prices.
On the other hand, if the Fed delays in trimming policy rates, the market may experience another dump next week.