Market Anticipates 25bp Rate Cut by Fed with 17.2% Probability
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 06 2026- Rate Cut Expectations: The CME FedWatch tool indicates a 17.2% chance of a 25 basis point cut by the Federal Reserve in January 2026, which could significantly influence market dynamics, particularly for cryptocurrencies like Bitcoin and Ethereum.
- Market Reaction: Bitcoin (BTC) is currently trading at $93,911.06, with a market cap of $1,875,595,819,632 and a dominance of 58.38%, reflecting investor sensitivity to potential shifts in Fed policy.
- Significant Trading Volume: The trading volume for Bitcoin within the day reached $53,447,224,058, indicating dramatic intraday movements that could affect investor risk behaviors amid changing policy expectations.
- Economic Strategy Impact: The Federal Reserve's upcoming policy decision is drawing attention, as expectations for future economic strategies could alter asset valuations and market trends, despite an 82.8% probability of rates remaining unchanged.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
