Bitcoin Holds Above $60K as Traders Warn of Sell-Off on 50 Basis Point Fed Rate Cut

"The size of the rate cut matters because it could lead to different market reactions. While a 25 bps cut would likely boost markets, a 50 bps cut might signal recession concerns, potentially triggering a deeper correction in risk assets," said Alice Liu, research lead at CoinMarketCap, in an email to CoinDesk.

"A pivot to lower borrowing costs has historically buoyed bullish sentiment among traders as cheap access to money spurts growth in riskier sectors."

"Traders on Polymarket are split between the possibility of a 100 basis points (bps) and 125 bps cut, giving both scenarios a 31% chance of happening."

"Fed funds data shows traders pricing in a 67% chance of a cut that will bring rates in the 4.5%-5% range from the current two-decade high between 5.25% and 5.5%"

Read at Coindesk