Participants in the Crypto market may be able to enderestimating how aggressive the US Federal Reserve is in the coming months of shifting the direction of its policy, according to an economist.
“Markets do not change the possibility of rapid rates in the coming months in the federal reserve part,” economist Timothy Peterson told Cointelegraph on Friday.
“There has been no gradual reduction in rates as the Fed currently thought,” said Peterson, who explained that he expects the “surprise impact” that kicks and potentially catch the outside of the market.
“It will jolt Bitcoin and Alts a lot, and I think it will happen in the next 3-9 months.”
Peterson’s comments come only days after the Fed implemented the first cut rate of 2025 on September 17 by 25 points basis, a highly expected event of most of the market, with 96% of the day 4% probability of rates reduced by 50 bps, According to In the tool of the CME Fedwatch.
The market expects another cutting rate in October
Bitcoin (Btc) Short up to $ 117,000 hours before Fed’s Fed rate announced but since retreating to levels seen in the days before, trading at $ 115,570 at the time of publication, According to In coinmarketcap.
CME data shows that market participants are pricing at a 91.9% chance of another 25 point rate cut off at the October 29th meeting, with an 8.1% likelihood that rates remain unchanged.
Related: Bitcoin Eye Eye Forecast
Fed officials Says They have two more quarter-point rates cut this year. However, Fed Chair Jerome Powell said, “We’re not on a pre-set path.”
Financial institutions are divided into Fed’s next move
Some financial institutions expect a more aggressive cutting rate at the September meeting, with a standard chartered forecasting of a 50 basis reduction in point.
CEO of Goldman Sachs David SolomonHowever, it is more confident that the Fed will remain on a 25 basis cut cut.
Lowering interest rates tend to be bullish for risk-on assets, including cryptocurrencies, as traditional investments such as bonds and term deposits are less beneficial to investors.
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