Caution Grips Crypto Markets
Cryptocurrencies declined in the past 24 hours amidst caution ahead of the Federal Open Markets Committee’s interest rate decision due to be announced on Wednesday afternoon. Markets focused on both the rate cut decision as well as the potential forward guidance. Labor market updates due from the U.S. on Tuesday morning also added to the market’s anxiety and reluctance to assume any major event risk ahead of the Fed’s decision.
The CME FedWatch tool shows the likelihood of a quarter percentage rate cut that would slash the target funds rate to 3.50-3.75 percent at 89.4 percent versus 86.2 percent a day ago, 88 percent a week ago, and 66.9 percent a month ago.
The expected probability of a further reduction in the rates to 3.25-3.50…
