Will the Fed Cut Rates in December? Crypto Weakens as Odds Shrink

The post Will the Fed Cut Rates in December? Crypto Weakens as Odds Shrink appeared first on Coinpedia Fintech News

Bitcoin has dropped to its lowest level in six months and the timing is rough.

The drop comes as investors lose confidence that the Federal Reserve will cut interest rates at its next meeting. And this is weighing heavily on both stocks and crypto markets. 

Investors are now getting ready for a busy week of economic data after the government has reopened after a record 43-day shutdown.

Fed Rate Cut Odds Drop 

The Fed cut interest rates by 25 basis points in the last meeting. After the Fed cut rates in September, big institutions like J

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Fed Shake-Up Ahead?

Looking ahead, the Fed itself may see big changes next year. Atlanta Fed President Raphael Bostic is stepping down early next year, which gives President Trump another opportunity to influence the committee. Powell’s term ends in May and a Supreme Court ruling that could allow the president to remove Fed Governor Lisa Cook could add another change.

However, several regional Fed presidents will rotate onto the committee next year and many of them are hawkish.

For now, the uncertainty remains and investors are watching closely to see whether the Fed will cut or hold in December.

Impact On Crypto Markets

Rate cuts are normally bullish for risk assets like crypto because lower interest rates usually mean more liquidity and higher risk appetite. However, if there is no rate cut in the next meeting, it could  trigger a sharp pullback in stocks and crypto, adding pressure to already fragile markets.

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