For cryptocurrency investors, the last 24 hours have been favorable, and BTC continues to hover above $62,000. Good news keeps coming. The latest forecasts by Moody’s are exactly what investors in risk markets wanted. So, what are the details and expectations?
Will Cryptocurrencies Increase?
If Moody’s is correct, BTC and risk markets may continue to rise. The recently published forecasts mention the potential for a surprise rate cut at the July 31 meeting. With the latest inflation data being low, this expectation supported by Moody’s could trigger a market rise by the end of the month.
We can summarize the important points from the statements as follows:
- We expect the Fed to cumulatively reduce the interest rate by 50-75 bp in 2024 and by 100-125 bp by 2025.
- The Federal Reserve may begin policy easing with a 25 basis point cut at the July 30-31 meeting.
According to FedWatch data, the market expectation for the July meeting is a 93% chance of rates remaining unchanged. The probability of a cut at the September meeting is around 95%. The view that the Fed will cut rates before the end of the year is almost 100%.
