📌Why Today’s FOMC Meeting Matters
Every trader is closely watching to see whether the Federal Reserve will cut interest rates before the end of the year. Rate cuts typically inject additional liquidity into the financial system—often described as increasing the supply of money—and when liquidity rises, risk assets, especially cryptocurrencies, tend to benefit the most.
Because of this, a potential rate cut can significantly influence:
1.Investor confidence
2.Market volatility
3.Liquidity flowing into Bitcoin, ETH, and altcoins
4.Both short-term and long-term market trends
That’s why today’s FOMC meeting is a major event for the entire market.
🟢 Scenario 1: 25 bps Rate Cut (The Most Expected Outcome)
A 0.25% rate cut is the outcome most analysts, traders, and major financial institutions expect.
Here’s what we know:
• The probability of a 25bps cut is around 95%
• Major banks are aligned with this expectation
• Markets have already adjusted for it
This leads to a simple conclusion: ➡️ A 25bps cut is already “priced in.”
This means the market has already prepared for this outcome, so:
• BTC and ETH stays normal
• The market might move normally
• No major surprise = limited volatility
A 25bps cut is the safe, predictable outcome — and predictable outcomes rarely shake the market , so markets usually move normally unless the Fed says something surprising.
🟣 Scenario 2: 50 bps Rate Cut (Bullish Surprise)
A 0.50% cut is not expected by the market.
If the Fed suddenly goes for 50bps:
• It becomes a bullish surprise
• Shows stronger liquidity coming into the economy
• Crypto (BTC, ETH, altcoins) can pump much harder
➡️ This is the scenario that could really push the market up.
Quick Summary
🔹 25bps = Expected → Market stays normal
🔹 50bps = Surprise → Crypto can pump hard
