Investors are not optimistic about a December interest rate cut by the US Federal Open Market Committee, with only 45.9% anticipating one. Odds of a 25 basis point cut were nearly 67% on Nov. 7. In September, banking institutions predicted at least two interest rate cuts in 2025, with Goldman Sachs and Citigroup projecting three cuts each. Interest rate decisions impact crypto prices, with lower rates increasing liquidity and propping up prices. The declining odds of a December rate cut are affecting market sentiment, potentially leading to more short-term price pain in the crypto market. Federal Reserve Chair Jerome Powell stated in October that a December rate cut is not guaranteed, signaling uncertainty. The Federal Reserve cut rates by 25 BPS in October, but crypto prices continued to decline. Economist Ray Dalio cautioned that the Federal Reserve is cutting rates into high asset prices, low unemployment, and low credit spreads, warning of a potential economic bubble. Dalio suggested that the Fed’s actions could lead to hyperinflation and currency collapse.

Read more at Cointelegraph: Less Than 50% of Investors Now forecast a December Rate Cut