Altseason Incoming? A 50 bps Interest Rate Cut is Now on Table

Key Notes

Prediction markets price 15-16% odds for aggressive 50 bps Fed rate cut on September 17, up from zero chance last Friday.

Bitcoin trades above $113,750 with 2% gains as crypto market cap reaches $3.88 trillion amid rate cut speculation and optimism.

Interest rate cuts typically benefit risk assets like crypto by rotating capital from bonds into higher-yield opportunities.

With one week remaining until the Fed’s Federal Open Market Committee (FOMC) meeting on September 17, a 50 basis-point (bps) interest rate cut is now on the table, according to prediction markets. The repricing was fueled on September 10, following compounded data that increased the chances of a more aggressive cut, bringing crypto bulls back to the surface.

In particular, the FedWatch tool by the CME Grou