Fedwatch Predicts 74.5% Chance of US Interest Rate Cut in December

The market tracking tool FedWatch has predicted a 74.5% chance of the Federal Reserve announcing a 0.25% interest rate cut in December. This heightened probability represents an 8.5% point jump from the previous estimate of 66% on November 29.

Bullish Signals for Bitcoin

The potential rate cut is seen as a boost for Bitcoin (BTC) and other cryptocurrencies, as lower borrowing costs have historically incentivized investors to explore more speculative investment opportunities. Bitcoin’s price has already more than doubled so far this year, largely driven by renewed market optimism in the US.

The increased probability of a rate cut comes after Federal Reserve Governor Christopher Waller expressed his leanings toward supporting a cut in a recent speech. However, Waller noted that the decision would depend on upcoming data regarding employment, consumer spending, and inflation, which could potentially alter his forecast.

Similarly, New York Fed Bank President John Williams told the Queens Chamber of Commerce that he expects interest rates to lower “over time,” though he did not explicitly state whether he would back a cut at the upcoming meeting.