Data from CME's FedWatch tool indicate a 71.3% chance of a 25 basis point Fed rate cut in September, affecting the cryptocurrency market.
Odds of Fed Rate Cut
Ahead of Jerome Powell's anticipated remarks at Jackson Hole on August 22, CME FedWatch data has shown a sharp increase in the likelihood of a 25 basis point cut at 71.3%, while the chance of rates remaining unchanged is at 28.7%. The market remains cautious as it awaits Powell's guidance.
Increased Volatility in Crypto Market
The uncertainty surrounding these developments adds to volatility within the cryptocurrency market, especially impacting Bitcoin and BNB. Traders have exhibited a risk-off behavior, leading Bitcoin to experience slight dips while other assets show significant fluctuations. Market participants are closely monitoring Powell's upcoming comments.
Current Situation Analysis
As of now, Bitcoin is trading at $112,907.71, reflecting hesitance among investors ahead of the possible rate cut. Its market cap is $2.25 trillion with a 24-hour trading volume of $59.12 billion. Analysts note that the current uncertainty could negatively impact short-term crypto sentiment, but longer-term strategies might benefit from clearer economic policies.
Overall, the anticipation of a Fed rate cut heightens market volatility within the crypto sector. Investors remain cautious, and future insights from Fed leadership could clarify current market dynamics.
