#fedoctoberratehikeoddsfallto17%
The fall in the odds of a Fed rate hike to 17%: A tactical breather for the crypto market
Expectations ahead of the Federal Reserve (Fed) meeting have taken a decisive turn. Probabilities in the derivatives market for an interest-rate increase have plunged sharply to around 17%, after having hovered above 60% just weeks ago.
This drastic moderation is mainly driven by two key factors:
Mixed macroeconomic data: A cooling in the U.S. jobs report and underlying inflation figures which, while still high, show signs of gradual stabilization.
More cautious messaging: Comments from Fed officials suggesting that the current monetary stance needs more time to be assessed before applying another adjustment.
For the digital asset ecosystem, this easing of restrictive pressure acts as a direct catalyst for liquidity and risk appetite.
As the odds of a rate hike to 17% unravel, the process is partially reversed: valuation multiple compression comes to a halt, and investors reduce their demand for extreme risk premiums to enter assets like Bitcoin (BTC) or Ethereum (ETH).
Conclusion: The drop to 17% in the odds of a rate hike in October removes a major headwind for cryptocurrencies. However, the market will continue to be shaped by the trajectory of long-term bond yields and upcoming inflation data over the coming months. For now, the crypto sector gains valuable room to consolidate support levels.
$QI
$GLMR
$QNT
The fall in the odds of a Fed rate hike to 17%: A tactical breather for the crypto market
Expectations ahead of the Federal Reserve (Fed) meeting have taken a decisive turn. Probabilities in the derivatives market for an interest-rate increase have plunged sharply to around 17%, after having hovered above 60% just weeks ago.
This drastic moderation is mainly driven by two key factors:
Mixed macroeconomic data: A cooling in the U.S. jobs report and underlying inflation figures which, while still high, show signs of gradual stabilization.
More cautious messaging: Comments from Fed officials suggesting that the current monetary stance needs more time to be assessed before applying another adjustment.
For the digital asset ecosystem, this easing of restrictive pressure acts as a direct catalyst for liquidity and risk appetite.
As the odds of a rate hike to 17% unravel, the process is partially reversed: valuation multiple compression comes to a halt, and investors reduce their demand for extreme risk premiums to enter assets like Bitcoin (BTC) or Ethereum (ETH).
Conclusion: The drop to 17% in the odds of a rate hike in October removes a major headwind for cryptocurrencies. However, the market will continue to be shaped by the trajectory of long-term bond yields and upcoming inflation data over the coming months. For now, the crypto sector gains valuable room to consolidate support levels.
$QI
$GLMR
$QNT
