2025-12-18 13:39:18

The latest CPI data has shifted market expectations, with rate futures now pricing in approximately 62 basis points of monetary easing over the coming year. This signals that traders are increasingly confident in a more dovish Fed stance as inflation pressures potentially ease.

What does this mean for the broader market? Here's the thing—lower interest rates typically benefit risk assets, including crypto. When capital becomes cheaper and bonds offer lower yields, investors tend to reallocate toward alternative assets like Bitcoin and altcoins seeking better returns.

The current pricing suggests markets expect multiple rate cuts ahead, though the exact timing and pace remain uncertain. Economic data releases in the coming months will be crucial in confirming or adjusting these expectations.

For crypto traders, this macro backdrop could set the tone for 2025. A softer rate environment has historically provided tailwinds for risk-on sentiment. Keep an eye on upcoming inflation reports and Fed communications—they'll likely drive significant market moves across both traditional and digital assets.

BTC-0,77%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

17 Likes

Reward
17
9
Repost
Share

Comment

0/400

DataChief

· 2025-12-21 13:37

The expectation of a 62 basis point interest rate cut, is the Fed really going to point shaving this time? Is it the spring for coin hoarders?

View OriginalReply0

LightningLady

· 2025-12-21 03:17

62 basis points? The Fed is easing, and the crypto world has a chance now. --- With such strong expectations for rate cuts, it's only a matter of time before funds flow into coins, just depends on who can catch the falling knife. --- Let the data speak, don't just listen to rumors; the CPI at the end of the month is the real test. --- Soft landing or recession... it feels like the market in 2025 will depend on how the Fed performs. --- With interest rates cheap, bonds are uninteresting; funds will definitely look for a place to go, and the dumb buyers in crypto are still the main characters. --- Commodities, stock market, coins... all probably going to loosen up together, just don’t know who will lead the rise. --- Can inflation really not be controlled anymore? Or is the Fed just bluffing? Don't be fooled. --- Are the long positions daydreaming? The fundamentals aren't that optimistic yet. --- It's just hype; actual rate cuts still have to wait for half a year.

View OriginalReply0

LiquidatedNotStirred

· 2025-12-20 07:42

62bp rate cut expectations, sounds good, but we've seen too many times when hawkish suddenly turns dovish... --- Talking about easing benefits for crypto again, I've heard this argument last year, but what happened? --- The key still depends on the data, don't be fooled by futures pricing, wait until the cut actually happens --- Bond yields are low, funds really need to find a place to go... Bitcoin should have taken off already --- In 2025, if the macro environment improves, the crypto space will have a chance; right now, it's all just paper wealth

View OriginalReply0

SolidityStruggler

· 2025-12-18 20:48

A 62 basis point rate cut expectation, is the crypto world about to take off? The key still depends on whether the Federal Reserve will actually act...

View OriginalReply0

NewDAOdreamer

· 2025-12-18 14:08

62 basis points? The Fed is really about to open the floodgates, this time the crypto world is in for a show --- The rate cut expectations are rising... Honestly, this wave is good news for both BTC and altcoins, funds will definitely flow into risk assets --- Wait, they’re talking about possibilities, not certainty... Don’t get too excited too early, it depends on how the economic data looks later --- We’ve been hearing about soft landings for over a year, but real results will have to wait until the 2025 data comes out --- Interest rates are down, bond yields are trash, what else can we do... Just go all-in on coins haha --- Historically, rate cut cycles are indeed crypto-friendly, but there are still so many variables now... It’s a bit uncertain --- The Fed’s words and market expectations have never matched, don’t be brainwashed by 62 basis points --- Where the money will flow depends on which country’s policies are the most lenient --- It feels like the real key will be the inflation data later this year, those will determine the actual cutting frequency --- Here we go again, another prediction of a bull market in 2025... I’ve heard too many of these in the crypto world

View OriginalReply0

RumbleValidator

· 2025-12-18 14:08

62 basis points? I need to keep a close eye on that... The real signal lies in data credibility. On the Fed side, we need to see actual implementation, don't just listen to futures traders blowing smoke. --- Low interest rate speculation is an old trick; the key is how the consensus reacts at key nodes... Bitcoin liquidity will increase, but system stability is the real priority. --- The tone for 2025? Uh, we still need to wait for January data validation. It's too early to draw conclusions now... Staking yields are worth paying attention to. --- Market pricing in 62bp easing? I'm more concerned about what on-chain data says; exchange traffic won't lie. --- Another interest rate story... The crypto world always hype this up, but validators will actually benefit, and gas fees will become more user-friendly. --- Honestly, I've seen many rotations in risk assets; the key is whether network reliability has improved... Without that foundational support, more liquidity is useless.

View OriginalReply0

HappyToBeDumped

· 2025-12-18 14:00

62 basis points? That's not enough, brother. Unless interest rates really start to plunge, it's all just paper talk. Let's wait and see. Once the CPI data is out, it'll be back to reverse operations. Wow, after bond yields fall, retail investors start going all-in on the crypto market. I know this routine too well. The question is, when will the timing truly arrive? No movement by mid-year. If they keep hesitating and holding meetings in 2025, I'll just give up completely. Don't just focus on what the Fed says; look at the economic data. That's the real truth. Human signals are all indicating rate cuts, but what about actual actions? It all depends on how December plays out. It's easy to say, but when the time really comes to fall, there will definitely be someone unable to take the buy-in.

View OriginalReply0

SadMoneyMeow

· 2025-12-18 13:58

A 62 basis point rate cut expectation? Come on, what the Fed says and what they do are the same. Wait, does this mean the crypto market is about to take off... Everyone will find a place to spend when money gets cheap. In reality, it all depends on how the Fed folks perform; anyway, we'll just watch the data speak.

View OriginalReply0

SilentObserver

· 2025-12-18 13:48

Wait a minute, 62 basis points and you want to fool us into a bull market? I've played this Fed game several times before. --- Lower interest rates are indeed a positive, but whether they can actually boost the market depends on real data, not just how futures are priced. --- If there are multiple rate cuts in 2025, I think we first need to see if inflation rebounds... This thing is too easy to fluctuate. --- Honestly, whether Bitcoin will go up or not isn't really decided by rate cuts; it also depends on how institutions move. --- After so many years of risk asset rotation, I've learned not to expect too much from the Fed's rescue rhetoric. --- With bond yields falling so much, retail investors bottom-fishing in crypto—are they perhaps the last bagholders? --- Haha, 62 basis points sounds like a lot, but if broken down, it's just a 25 basis point rate cut for the whole year, not that exaggerated. --- The key is the inflation data in January. If it rebounds and the Fed turns hawkish again, that will be quite funny.

View OriginalReply0