In 6 days, Bitcoin will get a boost from Washington

Source: Criptonoticias Original Title: In 6 Days, Bitcoin Will Receive a Boost From Washington Original Link: https://www.criptonoticias.com/mercados/6-dias-bitcoin-impulso-washington/ With 6 days left until the Federal Reserve’s monetary policy meeting (FED), derivatives and prediction markets are heavily pricing in an interest rate cut—an event that has historically been favorable for bitcoin’s (BTC) performance.

According to data from CME Group, the probability of a 25-basis-point cut has reached 89%. Only 10.8% of the market expects the FED to keep the current range of 3.75%-4% unchanged.

CME Group is confident that the FED will cut interest rates.

The scenario of a hike has been virtually ruled out by traders. The figures show that expectations of monetary easing overwhelmingly dominate the narrative leading up to the announcement.

This aligns with what prediction markets like Polymarket are showing, where the 25-basis-point cut option holds a 94% probability. Bets on a more aggressive move, such as a 50-basis-point cut or more, have lost traction.

Prediction markets take the interest rate cut as a given.

This context comes as bitcoin continues to try to regain ground. The digital currency has hovered around USD 93,000 after a drop that intensified in mid-November.

A rate cut typically puts downward pressure on Treasury bond yields, a condition that has historically acted as a catalyst for alternative assets like bitcoin.

However, the specter of a bear market looms, considering that some on-chain indicators remain in bearish territory.