Polymarket Predicts the US Federal Reserve Will Announce a 25 BPS Rate Cut, Reviving the Crypto Market

Polymarket is pricing in a 25 BPS rate cut in the US, predicting the Federal Reserve to announce the decision. This anticipated cut, projected during high inflation, could shift market sentiment significantly.

Polymarket is anticipating a 25 BPS rate cut by the Federal Reserve, projecting such an announcement during the upcoming meeting. This anticipation, emerging amidst high inflation, could significantly shift market sentiment, impacting both traditional and digital assets.

Prominent crypto analyst Crypto Rand, in a post on X (formerly Twitter), suggests that a rate cut might stimulate the crypto market, pushing Bitcoin to new heights, exceeding its all-time high of $103,900.

Rate Cuts Boosting Bitcoin’s Appeal

Moreover, rate cuts tend to enhance Bitcoin's attractiveness by reducing yields on traditional assets, encouraging investors to pursue riskier alternatives, such as cryptocurrencies. With inflation in the U.S. remaining stubbornly high, reports indicate a possible third rate cut this year.

As highlighted by the Guardian, the chances of a third rate cut this year are high, considering that the rate of inflation in the U.S. barely budged in November.

Also, Federal Reserve Chair Jerome Powell stated that the agency must carefully balance easing policy restraints without weakening economic activity, aiming to address inflation and achieve a “sustainable path down to 2%.”

Bitcoin Price Surges, Whale Activity Spikes

Bitcoin reclaimed the $100K milestone, surging from a daily low of $97,809.99 to a high of $101,913.36, according to CoinMarketCap data. While the cryptocurrency currently trades at 2.86% below its all-time high of $103,900, analysts remain optimistic about its potential to cross this threshold soon.

In a separate X post, crypto analyst Ali Martinez points out a surge in whale activity. As prices dipped from $104,000 to $90,000, over 342 wallets holding more than 100 BTC were created, indicating substantial accumulation of the digital asset.

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