Odds of December Fed rate cut plunge to 33% as BTC falls below $89K

At the beginning of November, the odds of a December rate cut were 67% among traders, but they have since cratered alongside investor sentiment.

The odds of an interest rate cut at the December Federal Open Market Committee (FOMC) meeting have plunged to 33% as “extreme fear” grips the crypto market and the price of Bitcoin (BTC) dips below $89,000.

Investors placed the odds of a December rate cut at about 67% during the first week of November, with the odds dropping below 50% on Thursday, according to data from the Chicago Mercantile Exchange (CME).

Traders on prediction markets Kalshi and Polymarket forecast the odds of a December rate cut at about 70% and 67%, respectively. While higher than CME, traders in general appear more hesitant about rate cuts due to persistent fears about inflation, according to The Kobeissi Letter.