Fed's probability of reducing the Fed drops to less than 5 percent: negative effects for the crypto market to be expected

Fed's probability of reducing the Fed drops to less than 5 percent: negative effects for the crypto market to be expected

Interest reduction of the Fed: Effects on the crypto market

Current developments in the area of ​​monetary policy of the US Federal Reserve, the Federal Reserve (FED), have recently caused a stir. According to the latest data from the CME Fedwatch Tools, the probability of reducing interest rates in July to less than 5 percent. This tendency could have a significant impact on the crypto market.

A small interest rate can usually lead to investors prefer more risky systems, such as cryptocurrencies. An interest rate reduction is often associated with a stimulating economic policy that stimulates investors to invest their capital in volatile markets. In the current case, however, the falling probabilities of reducing interest means that the conditions on the market could be less advantageous for crypto investments.

The abbilation of the interest reduction probabilities could damage the crypto market in July and lead to a more leisurely development. It remains to be seen how these monetary policy decisions will affect volatility and investor behavior in the crypto area. In particular, market participants should keep an eye on the reactions of the FED to economic indicators and their long -term monetary policy goals.