Odds of December Fed rate cut plunge to 33% as BTC falls below $89K
Overview
Recent shifts in market sentiment have significantly impacted expectations surrounding the Federal Reserve’s monetary policy. As investor confidence wanes, the odds of a December rate cut have decreased sharply.
What Happened
At the start of November, traders assigned a 67% probability to the possibility of a December rate cut by the Federal Reserve. However, this figure has since plummeted to 33%. This change in sentiment coincides with a notable decline in Bitcoin’s value, which has fallen below $89K. The decrease in the likelihood of a rate cut reflects changing perceptions among traders about the economic landscape and the Fed’s potential actions.
Impact on the crypto market
- The drop in the odds for a December rate cut may lead to increased volatility in cryptocurrency prices.
- A declining Bitcoin price could negatively influence investor sentiment across the broader crypto market.
- The shift in Fed rate cut expectations may affect liquidity and investment strategies within the crypto space.
- Traders may reassess their positions in light of the altered economic outlook, impacting trading volumes and market dynamics.
- Overall market confidence could be further shaken as expectations for monetary policy tighten.
Updated: 11/20/2025, 3:28:44 PM