COINOTAG News, December 20, reports that CME’s FedWatch data shows a 22.1% probability of a 25-basis-point rate cut in January, with a 77.9% probability of holding rates. This framing underscores tempered expectations for policy easing as investors reassess macro risk in the crypto sector.

In crypto markets, the Fed path continues to be a primary macro driver. While a January cut could support risk assets, the prevailing odds keep expectations modest, and Bitcoin and Ether have moved in a cautious, range-bound pattern as traders await clearer guidance on policy trajectory.

Market participants should monitor upcoming macro releases and FOMC commentary for shifts in rate expectations that could trigger repricing across liquidity-sensitive crypto sectors. With the door open to incremental policy adjustments, traders are advised to diversify risk and maintain risk controls as liquidity conditions evolve.