Interest rates cuts favor volatile assets, such as bitcoin and cryptocurrencies.
Jerome Powell, president of the Fed, does not give indications of wanting to make cuts soon.
Polymarket’s traigators, a decentralized platform that operates with cryptocurrencies, mostly anticipated that the United States Federal Reserve (Fed) will reduce interest rates at its next meeting of the Federal Open Market Committee (FOMC), scheduled for September 17.
On the platform, Users have invested 11 million dollars in this predictionwhich will close the same day as the meeting.
According to The betswhich can be seen in the image below, 80% trust that the Fed will cut the rates(among them, most awaits a reduction of 0.25 points and a few a cut of 0.50 points). On the other hand, 20% argue that rates will remain unchanged, while 1% bet on an increase of 0.25%. The fact that the numbers are rounded makes the sum slight higher than 100%.
Jerome Powell, president of the Fed, announced last week that interest rates will be maintained this month in the range of 4.25% to 4.50%, reflecting a cautious posture, as cryptonotic reports.
Powell emphasized that Any cut will depend on specific economic conditions, without offering clear details about what would be. This decision contrasts with the expectations of the trainers, who see in Polymarket a reliable indicator of collective feeling, since bets involve real money, unlike traditional surveys.
In this context, the president of the United States, Donald Trump, He has pressed publicly to Powell to reduce rates and stimulate the economy. Trump has openly criticized the president of the Fed and has even questioned his continuity in office, generating tensions that could influence monetary policy decisions.
The expectation of a rate cut It has direct implications for volatile assets such as Bitcoin (BTC). When the Fed reduces rates, indebtedness costs decrease, which encourages investors to channel funds towards higher risk assets, such as bitcoin, cryptocurrencies and actions.
Historically, Bitcoin has shown a reverse correlation with interest rates, which could translate into an increase in their price if rates effectively fall. Polymarket, by reflecting these bets, offers a window to the optimism of investors to a possible change in monetary policy.
