Fed’s Potential Rate Cut Sparks Crypto Market Optimism
Standard Chartered's revised forecast of a 50-basis-point Fed rate cut has injected fresh optimism into cryptocurrency markets. The bank's aggressive stance follows disappointing U.S. employment data showing the weakest job growth in four years, with unemployment rising to 4.3%.
Market expectations remain divided, with CME FedWatch Tool pricing a 90% probability of a 25-basis-point cut versus 10% odds for the larger move. The upcoming September inflation data will prove decisive in shaping monetary policy.
Cryptocurrencies typically benefit from looser monetary conditions, as lower yields on traditional assets drive capital toward alternative investments. This potential pivot comes as major digital assets show renewed strength after months of sideways trading.
