Polymarket Signals 90% Chance of 50bps Fed Rate Cut in 2026
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Rate Cut Expectations: The market predicts a 90% probability of a 50 basis point rate cut by the Fed in 2026, indicating heightened investor concerns about economic slowdown, which may lead to increased capital inflow into high-growth assets like cryptocurrencies.
- Liquidity Surge: Lower interest rates will reduce borrowing costs, thereby increasing the global money supply, which is expected to drive demand for high-risk assets such as Ethereum and Solana, further stimulating activity in the crypto market.
- Dollar Weakness Impact: Rate cuts typically exert downward pressure on the US Dollar, which may benefit Bitcoin as a 'digital gold', attracting investors seeking a hedge against fiat debasement.
- Market Volatility: While the 2026 rate cut outlook is favorable for prices, if the cut is a panic response to a failing economy, it could lead to short-term volatility in the crypto market, necessitating cautious investor strategies.
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.
