Fed Decides on Cutting Rates on 7th of May: Crypto Markets Poised for Volatility

By: coindoo|2025/05/06 18:45:01
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Crypto analyst Michaël van de Poppe shared a chart indicating that 97.2% of market participants expect the Fed to hold rates steady at the current target of 4.25% to 4.50%. Only 2.8% believe a cut to 4.00%-4.25% is possible, and 0% expect a rate hike.This data—pulled from the Fed Funds Futures market—underscores a strong consensus that the central bank will remain in a holding pattern, prioritizing inflation control over economic stimulation for now.A Surprise Could Shake the MarketDespite the overwhelming odds, van de Poppe notes:“Would be a great surprise for the markets if a rate cut does happen.”Indeed, any deviation from expectations—especially a surprise rate cut—could send shockwaves through equities, crypto, and bond markets, igniting short-term volatility and possibly sparking bullish momentum in risk assets like Bitcoin and Ethereum. .dark-mode .read-more {background-color: #343a40 !important;} READ MORE: Bernstein Predicts $330 Billion Corporate Bitcoin Allocation in Next 5 Years Why It Matters for CryptoInterest rate decisions significantly influence liquidity and risk appetite in markets. A rate hold signals a neutral stance, whereas a cut often injects optimism into speculative assets, making this decision particularly pivotal for the crypto sector.As the Fed prepares to make its move, all eyes remain fixed on Wednesday.The post Fed Decides on Cutting Rates on 7th of May: Crypto Markets Poised for Volatility appeared first on Coindoo.

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