Markets Price 91.8% Chance of 25-Basis-Point Fed Rate Cut in September
đ Federal Reserve September Rate Decision: High Probability of a Cut
According to BlockBeats and CME FedWatch data:
đč There is a 13.6% probability that the Fed will keep rates unchanged.
đč There is an 86.4% probability of a 25 basis point (0.25%) rate cut.
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đ§ What Does This Mean?
đ Simply put, markets are almost certain that the Fed will cut rates in September.
Quick Note: 1 basis point = 0.01%, so 25 basis points = 0.25%.
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đĄ Possible Impact on the Crypto Market
â Potential Upside (Bullish Side):
Increased Capital Flow â Lower rates make borrowing cheaper, encouraging investors to enter risk assets like stocks & crypto.
Weaker Dollar â If the USD weakens, demand for Bitcoin as an alternative asset may rise.
More Liquidity â Extra cash in the system could boost trading volumes and push prices higher.
â ïž Possible Risks (Bearish Side):
Over-Speculation â A sudden price surge followed by a sharp correction (Bubble Effect).
High Volatility â Bitcoin & Altcoins may face sharp pump-and-dump moves.
Long-Term Inflation Risk â If inflation accelerates, the Fed could hike rates again, pressuring markets.
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đź Summary
A Fed rate cut is short-term positive for crypto đ but comes with high volatility & long-term risks.
Short-Term: Bitcoin & Altcoins could rally.
Long-Term: Inflation or sudden future hikes may drag markets down. đłïž
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âïž What do you think? If the Fed cuts by 0.25%, will Bitcoin $BTC đ pump or đ dump?
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