[Market Update] Probability of December rate cut surpasses 80%…Virtual asset market rebounds

Suehyeon Lee

Summary

It reported that support for rate cuts from Federal Reserve officials has raised expectations for a December rate cut.
As a result, prices of major virtual assets such as Bitcoin and Ethereum are showing concurrent gains.
It said that the probability of a rate cut at the December FOMC on CME FedWatch has risen to 81%.

As the probability of a December rate cut rose, Bitcoin (BTC) and other virtual assets broadly showed a rebound.

As of 7:25 a.m. on the 25th, according to CoinMarketCap, Bitcoin is trading at $88,785.99, up 1.1% from the previous day. On the Upbit KRW market, it is trading at 133,518,000 won, up 1.21% from the previous day.

Major altcoins including Ethereum (ETH) also showed gains. Ethereum is currently trading on CoinMarketCap at $2,958.17, up 4.45% from the previous day, XRP is trading at $2.24, up 8.61% from the previous day. Solana (SOL) is trading today at $139.07, up 4.73% from the previous day.

This rebound is analyzed to be due to rising expectations of a December rate cut as Federal Reserve (Fed) officials continued to express support for rate cuts. Earlier, New York Federal Reserve Bank President John Williams hinted at the possibility of a rate cut, and Fed Governor Christopher Waller and San Francisco Fed President Mary Daly also supported a rate cut citing 'concerns over a weakening labor market,' which sparked the rebound.

Accordingly, the CME FedWatch currently shows the probability of a 25bp rate cut at the December Federal Open Market Committee (FOMC) has surged to 81%.