Bitcoin Rally to Continue? Big Fed Rate Cut Probability Soars

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As a seasoned analyst with over two decades of market experience under my belt, I have learned to navigate through the ever-changing tides of the financial world with a keen eye and a steady hand. The latest data from CME FEDWATCH, suggesting a 63% probability of a 50 basis points rate cut by the Fed on September 18, is indeed intriguing.

According to recent data from CME FedWatch, reported via the X platform on Bloomberg Terminal, the likelihood of an increased interest rate now stands above 50%.

This coming Friday, September 18th, it’s anticipated that the Federal Open Market Committee (FOMC) will convene and potentially decide on lowering the interest rates.

Based on information from CME FEDWATCH, approximately 63% of bets are placed on a potential 50-basis-point interest rate reduction at present. On the other hand, there’s a 37% chance that the rate cut could be 25 basis points instead.

🔸 CME FEDWATCH SHOWS 63% PROBABILITY BET ON 50BPS CUT, 37% FOR 25BPS AT SEPT 18 FED MEETING

— *Walter Bloomberg (@DeItaone) September 16, 2024

This year, anticipation surrounding multiple rate reductions announced by the Federal Reserve has been a significant factor fueling Bitcoin‘s price increases. Last week on Friday, the price of Bitcoin, the global leader in cryptocurrencies, climbed nearly 5%, enabling it to regain the $60,000 price mark.

In the last day, Bitcoin experienced a drop of approximately 3.22%. This dip took its value down from around $60,000 to the range of $58,560. At the moment I’m writing this, it is being traded within that price zone.

As an analyst, I anticipate that the imminent reduction in Federal Reserve interest rates could fuel the ongoing Bitcoin rally, potentially driving its value to new heights this year, provided other optimistic market conditions persist.

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2024-09-16 16:16