54.6% Chance of Fed Rate Cut Impacts Crypto Markets

The Federal Reserve’s potential 25 basis point rate cut in May is fueling market speculation and causing ripples throughout the cryptocurrency sector, with Bitcoin prices taking a hit. The CME’s “FedWatch” tool indicates a 54.6% probability of such a cut, setting off investor uncertainty and volatility across the crypto landscape. Bitcoin’s price has fallen by over 10%, reflecting broader economic anxieties. DeFi tokens may also face liquidity challenges as these changes in monetary policy impact market valuations.