FedWatch Signals 85.1% Odds of December 25bp Rate Cut, 14.9% Chance of Holding

COINOTAG News reports that CME’s FedWatch computes an 85.1% probability of a 25 basis point Federal Reserve rate cut in December, with a 14.9% chance of rates staying unchanged. The clearly skewed probabilities reflect evolving monetary policy expectations and help markets reprice the path of policy rates. Crypto traders and risk assets are recalibrating exposure as liquidity dynamics could shift on a prospective easing cycle.

Looking ahead, a December cut would likely lower financing costs and enhance risk-on sentiment in crypto markets, while a hold could keep volatility elevated as participants await further guidance from the Fed on inflation and growth. In either scenario, investors should monitor CME FedWatch updates and macro data for the next moves in Federal Reserve policy cues and crypto market liquidity dynamics.