"The forecast regarding the upcoming federal funds rate cut has been revised by market participants."

in #cme9 months ago

Market participants have adjusted their forecast on the CME FedWatch Tool for the federal funds rate cut, shifting from predicting it to start in May 2024 to now leaning towards March 2024.
I've been monitoring these forecasts daily and observed the change in their predictions.
Referencing historical data, the average duration of the federal funds rate is approximately 5 months over the last century.
Currently, it has been 4 months since the federal funds rate pause began.
Considering historical statistics indicating up to an 8-month pause in the federal funds rate, if the delay continues, it's likely to commence within the next 4 months.
Interestingly, the BTC 4th halving coincides with the projected date of April 2024.
Research suggests a 10-22% probability of a bearish market condition for one month following the federal funds rate cut.
It's crucial to be prepared for the risk of the market abruptly transitioning into a bearish trend. You can find more details and sources in my post.

An important aspect to consider amid these projections is the potential market response. Historical data suggests a probability range of 10-22% for a bearish market condition persisting for one month following the federal funds rate cut. This potential shift in market sentiment emphasizes the need for proactive risk management strategies and a thorough understanding of the implications of such a change in interest rates. Preparedness for sudden market shifts is imperative to navigate potential challenges that may arise as a result.

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