Crypto Market Adjusts as Fed Rate Cut Bets Decline

The cryptocurrency market is grappling with a significant shift in market sentiment as traders are adjusting their expectations regarding the Federal Reserve’s actions. Following recent economic data suggesting a resilient U.S. economy, bets on a December rate cut by the Federal Reserve have significantly diminished. The once expected 90% probability of a rate reduction has fallen to just 71%, reflecting growing belief that interest rates will remain higher for longer. This change underscores market expectations for a slower and more gradual path towards lower rates, impacting everything from borrowing costs to asset valuations across traditional markets.