Rate Cut Odds Rise To 81% As Cryptocurrency Bettors On Polymarket Weigh In Dovish Signals From Fed Officials

Core Viewpoint - Cryptocurrency investors are increasingly betting on a potential interest rate cut by the Federal Reserve in December, with significant shifts in prediction market odds indicating strong expectations for a 25 basis point reduction [1][2][4]. Group 1: Prediction Market Insights - The odds of a 25 basis point cut rose to 81% on Polymarket, up from 67% the previous day and 44% a week prior [2]. - The likelihood of rates remaining unchanged decreased from 30% to 18% within 24 hours [2]. - Over $159 million has been wagered on the outcome, with the next Federal Open Market Committee meeting scheduled for December 10 [3]. Group 2: Market Reactions - The increase in odds for a rate cut followed dovish comments from Federal Reserve officials, which positively impacted stock and cryptocurrency markets, including a rise in Bitcoin prices [5]. - Goldman Sachs' chief economist suggested that the delayed September jobs report may have solidified expectations for a 25 basis point cut at the upcoming FOMC meeting [5]. - Notable investor Bill Gross also forecasted a rate cut next month, aligning with the overall market sentiment [5].