The firm previously saw no rate cut by the Fed for December but now revises that call to a 25 bps rate cut for next week. Adding to that, they also see another 25 bps rate cut in April 2026. And that will take the Fed funds rate to their terminal target range of 3.00% to 3.25%.As things stand, traders are pricing in ~86% odds of a 25 bps rate cut by the Fed for December currently. And by April next year, there is roughly 44 bps worth of rate cuts priced in at the moment.
This article was written by Justin Low at investinglive.com.
💡 DMK Insight
The Fed’s potential rate cuts are shifting market sentiment, and here’s why that matters: Revising expectations for a 25 bps cut next week signals a significant pivot in monetary policy, which could boost risk assets like equities and crypto. Traders should watch how this impacts the dollar, as a weaker dollar often leads to higher prices in commodities and cryptocurrencies. If the Fed follows through with this cut, it could create a bullish environment for Bitcoin and Ethereum, especially if they break key resistance levels. On the flip side, if the cuts don’t materialize as expected, we could see a sharp correction in these markets. Keep an eye on the Fed’s communications leading up to the meeting. Any hints or changes in tone could provide clues about future rate adjustments. Also, monitor the 200-day moving average for major cryptocurrencies; a sustained break above this level could signal a strong upward trend. The immediate focus should be on next week’s meeting, but the implications could ripple through the markets for months to come.
📮 Takeaway
Watch for the Fed’s rate decision next week; a 25 bps cut could ignite bullish momentum in crypto and equities.




