Key Predictions for Interest Rates
The Federal Reserve is anticipated to reduce the federal funds rate by 25 basis points, setting it at a range of 3.50%-3.75% on December 10, 2025. This decision is supported by 89 out of 108 economists in a survey conducted by Reuters. Goldman Sachs also indicated that this rate cut is "almost a foregone conclusion".
The anticipated rate cut aims to reduce borrowing costs and stimulate economic activity. Such monetary policy changes are generally seen as beneficial for risk assets, including cryptocurrencies like Bitcoin and Ethereum. Following the expectation, these markets have shown signs of increased optimism.
"A rate cut at the upcoming December meeting is almost a foregone conclusion."
Market Anticipation and Bitcoin's Position
The probability of a Fed rate cut rose sharply from 49% in mid-November to over 86%, showcasing significant market anticipation and adaptation to economic indicators like U.S. jobless claims.
Bitcoin (BTC) is currently priced at $92,538.39 with a market cap of $1.85 trillion. The trading volume over the past 24 hours stands at $70.47 billion, marking a 16.55% decrease. Price movements include a 0.67% drop in the last day, a 1.86% rise in the past week, and a decline over the past three months.
Historical Impact of Rate Cuts on Crypto
Research suggests that a rate cut by the Federal Reserve has historically influenced cryptocurrency prices positively. Such actions often signal a more favorable investment climate for risk assets, encouraging inflows into digital currencies like Bitcoin and Ethereum. Federal Reserve rate cuts are particularly noted for their impact on the crypto market.