TechFlow news, December 16 — According to Decrypt, CME FedWatch data shows that markets widely expect the Federal Reserve to announce a 25-basis-point rate cut at this week’s FOMC meeting, bringing rates to a range of 4.25%-4.50%. This would mark the second consecutive rate cut following November, with the current probability reaching as high as 93.4%.
Luis Buenaventura, Head of Cryptocurrency at GCash, stated that since the market has already priced in the anticipated rate cut, the direct impact of this policy adjustment on cryptocurrency prices will likely be limited. Historical data indicates that when Bitcoin rises 50% within 60 days, there is approximately a two-thirds chance of an additional 35% gain over the subsequent two months.
Neal Wen, Global Business Development Director at Kronos Research, added that in a low-interest-rate environment, institutional investors tend to view crypto assets as an alternative to traditional investments. Min Jung, Research Analyst at Presto Labs, noted that market attention has now shifted to Chair Jerome Powell's policy remarks and the latest economic projections dot plot, which will provide critical guidance on the trajectory of monetary policy in 2025.
