Crypto Market Set for Potential Upswing Ahead of Fed Rate Cut
- Probability of a Fed rate cut this Wednesday is at 87% according to the CME FedWatch tool.
- JPMorgan and Morgan Stanley now predict a likely Fed rate cut of 25 basis points in December.
- The Federal Reserve’s balance sheet has decreased to $6.53 trillion, the lowest since April, after a quantitative-tightening cycle.
- November’s U.S. jobs report showed payroll growth of 119,000, exceeding the estimate of 53,000, positively impacting Bitcoin.
- Historically, stock markets have increased by between 5% and 15% within six months following the start of rate-cut cycles.
This week’s anticipated events include JOLTS job openings data and a press conference from Fed Chair Jerome Powell, which may influence market sentiment further.
As traders prepare for potential changes in monetary policy, analysts expect significant movements in digital assets like Bitcoin based on these developments and recent employment data trends.
