FED Meeting in December: Crypto Market Braces for Interest Rate Cut Decision

Market sentiment has shifted decisively toward anticipating a 25 basis point rate cut at the upcoming Federal Reserve meeting, with Polymarket traders now pricing in an 84% probability of easing. Just weeks ago, the outlook was far less certain.

Recent economic data paints a picture of slowing but stable labor conditions. September's delayed jobs report showed modest growth of 119,000 positions alongside rising unemployment to 4.4%, with downward revisions to prior months. Fed officials including Governor Christopher Waller have pointed to these "stall speed" indicators as justification for policy adjustment.

The crypto market watches closely as monetary policy shifts typically impact risk assets. Bitcoin and major altcoins often exhibit heightened volatility around Fed decisions, particularly when rate expectations change abruptly. While Friday's jobs report could still sway the outcome, the current consensus suggests accommodative policy may buoy digital asset valuations.