Fed rate expectations remain a key driver for crypto markets, with CME’s FedWatch Tool (per FXStreet) showing a 26.6% probability of a January 25bp rate cut and a dominant 73.4% likelihood of no change to the federal funds rate.
For the March horizon, the tool assigns a 39.4% chance of a cumulative 25bp cut, a 53.4% probability of holding the rate, and a 7.3% probability of a cumulative 50bp cut, underscoring a tempered policy trajectory that can influence liquidity and risk pricing across crypto assets, including Bitcoin.
As traders assess these policy probabilities, monetary policy expectations may shape near-term volatility. Investors should maintain disciplined risk management and monitor credible policy signals to gauge potential shifts in risk sentiment within the digital asset space.
Source: https://en.coinotag.com/breakingnews/fed-rate-outlook-via-cme-fedwatch-january-25bps-cut-odds-26-6-march-25bps-cut-39-4-unchanged-still-most-likely
