What's Up with the Fed's Rate Cut Plans?

The chances of a December interest rate cut by the U.S. Federal Reserve are looking shaky. Right now, less than half of the investors think it's going to happen. This drop in confidence is making waves in the crypto market, which is already feeling the heat.

Shifting Odds and Market Impact

Just a few weeks ago, the odds were much better, with nearly 67% betting on a cut. But things change fast. Back in September, big banks like Goldman Sachs and Citigroup were calling for multiple rate cuts in 2025. However, the Fed's recent moves haven't been as crypto-friendly as hoped.

Why Interest Rates Matter for Crypto

Interest rates are a big deal for crypto. Lower rates usually mean more money flowing into the market, boosting prices. But when rates stay high, it's a different story. The current uncertainty is adding to the market's gloom, and it might get worse before it gets better.

Fed Chair Jerome Powell's Stance

Federal Reserve Chair Jerome Powell has been clear: a December rate cut isn't a sure thing. He said there's no set plan, and the Fed is still debating its next move. Even though the Fed cut rates in October, crypto prices kept falling. Investors saw that cut coming, so it didn't make much of a splash.

Expert Warnings and Economic Concerns

Some experts, like Ray Dalio, are warning that the Fed's rate cuts are happening at a weird time. With asset prices high and unemployment low, this isn't the usual scenario for rate cuts. Dalio thinks the Fed might be pushing the economy into a bubble, which could lead to bigger problems down the road.