Rate Cut Hopes Fade: Only 36% Expect Two Cuts in 2025
Market expectations for Federal Reserve rate cuts have diminished significantly, with only 36% of participants anticipating two reductions in 2025. This shift in sentiment reflects growing concerns about persistent inflation and stronger-than-expected economic data.
The changing outlook for monetary policy could create headwinds for risk assets, including cryptocurrencies. Historically, tighter monetary conditions have correlated with decreased liquidity in digital asset markets, though crypto's decoupling from traditional markets has become more pronounced in recent cycles.