Only one day left before the interest rate decision from the Federal Reserve (Federal Open Market Committee) ✍️
It is very likely that the interest rate will be cut by 25 basis points (87% probability according to the CME FedWatch indicator), which will lower the interest rate to 3.50-3.75%.
It makes sense that the markets have priced in this decision, but the real anticipation lies in what the Federal Reserve will announce for 2026: Will it maintain its cautious outlook, or will it pave the way for further monetary easing in 2026?
If they remain cautious planning for just one or two cuts, that could disappoint the markets (limited liquidity, strong dollar), and cryptocurrencies may drop again ❌
If they consider the possibility of cutting interest rates three or four times, that would allow us to expect more liquidity, and thus a potential bullish reaction from cryptocurrencies 🤝
It all depends on Powell's tone and the famous "dot plot" that will reveal the expected interest rate cuts for 2026. We'll find out tomorrow! ⏳
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