The probability of an interest rate cut in March has dropped to just 7%… What does this mean for the markets?
When the probability of an interest rate cut falls to 7%, it's not just a passing figure…
It's a clear message from the market:
No rate cut is imminent.
But why has pricing in the rate cut fallen so quickly?
Markets had been anticipating an early easing cycle, but recent economic data – both inflation and labor market strength – have completely changed the picture.
Inflation remains above target, and the economy hasn't shown a sharp slowdown that would force the central bank to act immediately.
In other words:
There isn't enough pressure to cut interest rates right now.
What does this mean in practical terms?
1. The dollar remains relatively supported, as higher interest rates for a longer period mean better returns on dollar-denominated assets.
2. Stocks may experience some volatility, as part of the recent rally was based on expectations of a rapid rate cut.
3. Gold may enter a temporary equilibrium, as the metal reacts strongly to monetary policy expectations.
Most importantly:
The shift from expecting an early rate cut to “higher interest rates for longer” is re-evaluating risk across all markets.
The market doesn't just react to the actual decision,
it reacts to expectations.
And when expectations suddenly change, money moves quickly.
The real question now isn't:
Will there be a rate cut in March?
But:
When will the first actual cut begin?
And how many cuts will there be during the year?
Because the next monetary policy cycle will determine the direction of liquidity, the cost of funding, and global risk appetite.
In the markets, 7% means one thing:
March is no longer on the table.
But the cycle isn't over… it's just being postponed.
U.S. inflation fell to 2.4% in January, below expectations and down from 2.7% in December.
• Monthly CPI rose just 0.2% • Core inflation held at 2.5% • Energy prices dropped 1.5%
Cooling shelter and food costs helped bring inflation closer to the Fed’s target, but consumers remain cautious as markets watch closely for possible rate cuts. 👀
Many influencers feel the same but are very scared to post this. I think crypto market finally deserves some fresh air to breath.
- Indicators and oscillators are oversold - Sales are gradually decreasing, while purchases are increasing (spot) - Meanwhile, the crowd started opening shorts - Huge profile volumes are spotted near $64,000 - $65,000 support - Stocks are dumping, while crypto is staying strong - Fear&Greed Index is 5 (meme argument but still)
As the result, I expect to see some local growth towards $72,000 resistance and probably even $76,000 (if the previous one is broken up) and then dump continuation.
SETUP INVALIDATION: Breakdown of the $64,000 support level. In this case we will go straight short down to $52,000 zone.
↗️ The price of ETH is trading near the $1,900 level. The price may start a powerful upward movement after gathering liquidity from the previous low at $1,865. The main target for price growth is the accumulated liquidity above the $2,150 level.
Following the release of CPI data, expectations for a Federal Reserve (Fed) interest rate cut in 2026 have risen to 61 basis points, up from just 58 basis points previously.
Anyone closely following the crypto market in all its aspects will know that 2026 is no ordinary year. This year, crypto will be fully regulated and legalized in America and globally, and negotiations between the major players have been ongoing for months.
Therefore, the fiasco that occurred in the crypto market in 2025, with the manipulation by platforms and whales, was calculated because they knew this was their last year to play with the market as they pleased. After the market is regulated and investors are protected, they won't be able to do so again.
The current bear market isn't a typical bear market; it's a deep and very precise surgical operation to completely clean up the market. That's why we're all witnessing the severity and speed of the decline.
By the end of 2026, the bear market will end, crypto will be legalized and regulated, and this market will be cleansed, with all scam coins removed. Then we'll start with a clean and respectable market. I don't expect many to survive until then because many have already left the market, and many more are expected to leave.
Yesterday we saw gold going down by almost -4% in just 2 minutes.
The drop was really big from 5085 to 4880 with -$205.
The problem is that we didn’t have any catalyst for this move. The same thing happened with silver.
Silver fell again by almost 11%, a bigger move.
Usually, these bigger sell-offs aren't driven by normal retail traders. The retail traders don’t all react immediately in just 2 minutes.
I thought we would read some news after that, but nothing came out.
From Reuters: “Precious metals fell with stocks last night. They didn’t have much of a macro catalyst,” Rodda added.
From Bloomberg: The drop accompanied the nervousness on Wall Street, where prices bowed across asset classes on concerns about the impact of artificial intelligence on corporate earnings.
Whether you believe this news is up to you. You already know my opinion :)
After a short correction , Gold should rise again. The market is a bit scared today, but it could correct and rise again. The profit taking that happened yesterday will join the gold price again and push it higher.
You may find more details in the chart. Thank you and good luck!
While the media is preoccupied with sensational headlines, an economic "heart attack" is silently unfolding.
The numbers don't lie,
and what's happening today in the US markets isn't just a "correction,"
it's the pressure reaching a breaking point.
We are facing the worst levels of institutional and economic crisis since the 2008 disaster.
1. The guillotine of major corporations In the last three weeks, 18 major companies have fallen into bankruptcy.
We're talking about multi-billion dollar companies collapsing at a rate of six per week.
We haven't seen this pace since the height of the pandemic and the depths of the 2008 crisis.
When "heavyweight" companies start collapsing like this, it means that the liquidity crunch has reached its peak.
2. The "crushed" consumer and historic debt The real danger isn't just in the budgets, but in people's pockets.
Household debt has reached a staggering $18.8 trillion.
But the real disaster isn't the size of the debt, it's the inability to repay it.
Credit card default rates have jumped to 12.7%, a faster rate of default than we saw during the 2008 financial crisis!
-- 3. Young People: The First Victims Worryingly, the demographic that drives consumption (18-39 years old) is the most affected by default.
When young people lose their ability to spend due to accumulating debt for education, cars, and credit cards, the primary engine of the economy grinds to a halt.
-- The Bottom Line: What does this mean for you?
We are living in the "late cycle."
Companies are going bankrupt, consumers are defaulting, and debt is at an all-time high.
This combination is usually followed by "surgical intervention" from the Federal Reserve through interest rate cuts and injecting liquidity to salvage what can be saved.
But history teaches us that intervention often comes after the damage has already been done.
If sellers hold the 4980-5000 level, gold prices may fall again, targeting 4910-4850.
On the other hand, if gold prices can effectively break through and continue to rise above $5000-5020, it will weaken the bearish outlook and open the door to a rebound to $5080.
Yesterday, it was reported that Russia is considering moving back to the US dollar as part of a wide-ranging economic partnership with President Trump.
In the past 3–4 years, Russia has strongly advocated reducing reliance on the USD, fueling the major "de-dollarization trade" narrative.
Several other countries have followed suit, reducing exposure to dollar assets — a key reason for the DXY's decline.
The massive rally in gold and silver has also been driven by this trend, as countries dump Treasuries and buy precious metals.
But now this trade may be over.
Russia is now planning to shift toward a dollar-based settlement system, which would boost USD demand.
A stronger USD has historically been bearish for assets, so metals, equities, and crypto will suffer.
Metals will be hit hardest, as a strong USD undermines the debasement trade narrative.
For equities and crypto, it will be bearish but likely not for long.
With more energy supply entering markets after a Russia–US partnership, inflation will drop and the Fed will become less hawkish.
This reduces the odds of monetary easing, but at least removes Fed uncertainty.
Remember, BTC rose in 2023 despite Fed rate hikes and QT.
Risk-on assets love certainty — if this deal is finalized, it will be mid- to long-term bullish for stocks and crypto.
Gold and silver, however, could enter a multi-year downtrend.
↗️ The price of S showed a strong upward movement, during which it formed a 2-hour FVG zone in the range of $0.04080 - $0.04320. If the price holds this zone during the correction, the upward movement will continue to the previous high of $0.05490.