XRP Soars 6%, Bitcoin Closes On $88k As Fed Rate Cut Odds Surge To 81%: Market Wrap
Ripple’s XRP soared over 6% and Bitcoin (BTC) closed on $88K as the odds that the Federal Reserve will cut interest rates in December surged to almost 81%.
XRP was boosted as Franklin Templeton and Grayscale listed XRP ETFs (exchange-traded funds) on NYSE Arca yesterday.
Solana (SOL) surged 5% in the past 24 hours, Bitcoin was up 1% to trade at around $87.4k and Ethereum gained 4.4%
Tron (TRX) was the only token among the top 10 cryptos to suffer a loss after it slid over 1%.
The rise in crypto prices led to $260.56 million in liquidations from short positions, according to CoinGlass.
During the same period, $122.23 million was wiped out from bullish bets.
December Rate Cut Odds Soar
The recent uptick in crypto prices comes amid increasing optimism that the Fed will announce an interest rate cut at its next meeting on Dec. 10.
According to the CME Fedwatch tool, traders believe there is an 80.7% chance that the Fed will cut interest rates to within the 3.5% and 3.75% range.
Interest rate cut odds for the Dec. 10 Fed meeting (Source: CME Fedwatch tool)
Traders on the decentralized predictions market Polymarket have also raised their odds that there will be an interest rate cut at the next meeting.
A contract that asks what the decision will be shows an 83% chance that the Fed will announce a 25 basis point decrease.
Historically, a rate cut is good for crypto assets because it lowers borrowing costs and boosts liquidity, typically making investors more confident to allocate capital toward risk assets.
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