The current Federal Reserve interest rate stands at 5.25%-5.50%. As the Federal Open Market Committee (FOMC) meeting approaches on September 18, predictions suggest a 69.5% likelihood of a 25 basis points (BPS) rate cut and a 30.5% chance of a 50 BPS reduction.
Speculations about potential rate cuts have significant implications for the cryptocurrency market, particularly Bitcoin ($BTC). A favorable shift in interest rates could spur increased investment in riskier assets like cryptocurrencies, as lower borrowing costs might drive capital into alternative markets. Investors will be keeping a close eye on the upcoming FOMC meeting, as shifts in monetary policy could create volatility and new opportunities within the crypto space. The market’s response to these forecasts could determine Bitcoin’s trajectory in the coming weeks.