The issue of interest rate cuts has come back to the table in December, but this time the market's response is much more cautious. What I see is this: even though everyone talks about the discount as if it is "certain", the Fed's language is still soft but not guaranteed.
The critical point is that the data coming in recent weeks has pulled inflation down. If this trend does not change, the last meeting of the year could really be a turning point. Because market psychology quickly prices in the expectation that "once it starts, it continues."
When it comes to the crypto side... I generally find this period to be turbulent but full of opportunities. Historically, the pricing process for interest rate cuts doesn't explode on the first day; first, a wave pattern forms, then the real movement comes. Especially if the pressure on BTC and ETH is relieved, the December-January period could be more vibrant than expected.
I am closely monitoring this possibility: The main question is how early the price will be priced if a discount comes, and how severe the reaction will be if it does not come?
Sometimes the whole issue is asking the right question at the right time.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
#DecemberRateCutForecast
The issue of interest rate cuts has come back to the table in December, but this time the market's response is much more cautious.
What I see is this: even though everyone talks about the discount as if it is "certain", the Fed's language is still soft but not guaranteed.
The critical point is that the data coming in recent weeks has pulled inflation down. If this trend does not change, the last meeting of the year could really be a turning point. Because market psychology quickly prices in the expectation that "once it starts, it continues."
When it comes to the crypto side...
I generally find this period to be turbulent but full of opportunities. Historically, the pricing process for interest rate cuts doesn't explode on the first day; first, a wave pattern forms, then the real movement comes. Especially if the pressure on BTC and ETH is relieved, the December-January period could be more vibrant than expected.
I am closely monitoring this possibility:
The main question is how early the price will be priced if a discount comes, and how severe the reaction will be if it does not come?
Sometimes the whole issue is asking the right question at the right time.