Bitcoin 
$86,219.53 It started December with a decline, and losses exceeding 10 percent in many altcoins are noteworthy. Last week, we saw an increase in the markets as interest rate cut expectations improved, but the monthly closing candle was enough to turn cryptocurrencies upside down. So what are the current predictions for interest rates?
Bank of America Forecasts
BofA Global Research Today, he shared his new evaluation for his December interest rate forecast and predictions about the economy. Analysts say that the possibility of a rate cut has increased for December 10 following the signals given by the Fed members last week, and they expect the last meeting of the year to be positive with a 25bp discount.
The bank, which previously announced that they did not expect a discount for December, has now changed its decision. This is a positive development for cryptocurrencies under normal conditions, but we saw its effects in a limited way in the charts. Analysts who expect 2 more interest rate cuts in 2026 think that the discounts may be bypassed until the June and July meetings.
“Our prediction that there will be additional cuts next year stems from the fact that Powell will leave office, not from our assessment of the economy.” – BofA Analysts
We will probably find out who the new chairman of the Fed will be before the end of the year. Envy is the first piece that stands out, and NY Fed President Williams is in second place. Williams, who improved interest rate cut expectations with his dovish-toned statements on Friday, supported risk markets.
“We think that if the Fed cuts interest rates next week, it will increase the risk of pushing policy into a loose area as fiscal incentives come into play.” – BofA
Cryptocurrencies Review
CME Group FedWatch According to the broker, the market’s interest rate cut expectation is over 80%. This shows that the discount has now been finalized, days before the meeting. The Fed does not like surprises, and Williams’ statements improved expectations after the employment numbers came in badly. Even though things are getting better on the Fed front, the charts are disturbingly red today as the risk appetite has not yet recovered and BTC has not seen the expected support in the resistance.
Following the data coming in the coming days and the December 10 decision Powell’s The statements he makes will be decisive. If it is clearly announced that interest rate cuts have stopped, this will undermine the risk appetite until May. However, Powell’s statements in a more dovish tone will improve January expectations.
