📉 Final FOMC Meeting of the Year — Will the 25BP Cut Spark a Market Rebound? With the Fed’s last rate decision of 2025 just around the corner (3:00 AM UTC+8 this Thursday), the market is pricing in an 84% probability of a 25BP rate cut.
But the bigger question is: What happens next?
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🔍 My Rate Cut Prediction
I’m leaning toward a single 25BP cut this week. Here’s why:
Inflation has cooled faster than expected in Q4.
Labor market softness gives the Fed room to ease.
Real rates are still high — a small cut won’t harm credibility.
This cut is more about pre-emptive support than panic. That generally fuels risk-on sentiment.
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📈 Will the Market Rebound?
If the cut is confirmed, I expect:
Crypto: Short-term volatility → then a rebound as liquidity expectations improve
Stocks: Immediate positive reaction, especially growth sectors
Dollar: Likely to weaken, giving risk assets more breathing room
But if the Fed signals no further cuts, the upside could be limited.
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💡 My Current Trading Strategy
✔️ BTC/ETH: Accumulating in dips, aiming for post-FOMC volatility spike ✔️ Alts: Reducing exposure before the announcement — volatility risk is high ✔️ Stablecoins: Keeping some dry powder to catch any sharp dips after the decision ✔️ Macro trades: Watching DXY closely; a break below key support could confirm the risk-on shift
This week is all about positioning smartly before the volatility.
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📣 Your turn! Do you think the Fed will cut this week? And how are you positioning for the decision?
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#FedRateCutPrediction
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📉 Final FOMC Meeting of the Year — Will the 25BP Cut Spark a Market Rebound?
With the Fed’s last rate decision of 2025 just around the corner (3:00 AM UTC+8 this Thursday), the market is pricing in an 84% probability of a 25BP rate cut.
But the bigger question is: What happens next?
---
🔍 My Rate Cut Prediction
I’m leaning toward a single 25BP cut this week.
Here’s why:
Inflation has cooled faster than expected in Q4.
Labor market softness gives the Fed room to ease.
Real rates are still high — a small cut won’t harm credibility.
This cut is more about pre-emptive support than panic.
That generally fuels risk-on sentiment.
---
📈 Will the Market Rebound?
If the cut is confirmed, I expect:
Crypto: Short-term volatility → then a rebound as liquidity expectations improve
Stocks: Immediate positive reaction, especially growth sectors
Dollar: Likely to weaken, giving risk assets more breathing room
But if the Fed signals no further cuts, the upside could be limited.
---
💡 My Current Trading Strategy
✔️ BTC/ETH: Accumulating in dips, aiming for post-FOMC volatility spike
✔️ Alts: Reducing exposure before the announcement — volatility risk is high
✔️ Stablecoins: Keeping some dry powder to catch any sharp dips after the decision
✔️ Macro trades: Watching DXY closely; a break below key support could confirm the risk-on shift
This week is all about positioning smartly before the volatility.
---
📣 Your turn!
Do you think the Fed will cut this week? And how are you positioning for the decision?