2026-01-08 20:25:57

The Congressional Budget Office (CBO) has recently released its federal policy outlook. According to the forecast, the Federal Reserve is likely to continue to cut interest rates slightly this year to ease potential pressures in the labor market.

Specifically, the CBO believes that U.S. interest rates could fall to 3.4% in the fourth quarter and remain at that level until 2028. Meanwhile, the unemployment rate is expected to gradually decline to around 4.6%, and the PCE inflation rate, which the Federal Reserve focuses on, will also gradually converge to around 2.7%.

This expected signal is not unfamiliar to the market— a moderate rate cut environment usually means relatively ample liquidity, which often supports risk assets. For participants in the crypto market, the Federal Reserve's policy stance remains an important factor influencing the medium-term trends of mainstream cryptocurrencies like Bitcoin and Ethereum.

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WinterWarmthCat

· 7h ago

With such clear expectations of interest rate cuts, why hasn't the crypto market taken off yet...

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GateUser-75ee51e7

· 01-09 19:42

The expectation of interest rate cuts is back again. Every time, they say it's good news, but the crypto world remains the same.

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gaslight_gasfeez

· 01-09 16:51

The expectation of interest rate cuts is back. The promised 3.4% maintained until 2028... Can we believe this wave? Anyway, I'm just waiting to see if it's a signal that BTC is about to take off again.

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liquidation_surfer

· 01-08 20:56

With such clear expectations of interest rate cuts, why haven't the crypto market started to heat up yet...

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RugpullSurvivor

· 01-08 20:55

Interest rate cuts are here, is Bitcoin about to take off? It's the same old story—liquidity easing can save the crypto world? I doubt it. Q4 drops to 3.4%... Anyway, I don't trust the CBO's forecasts; they are always roughly right. Wait, will it stay at this level until 2028? That means there are opportunities in the coming years? That's interesting. So is it still too early to buy the dip? I've already cut my losses and am too lazy to chase. Basically, it's just printing money. The crypto carnival is about to start again.

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TradingNightmare

· 01-08 20:54

The expectation of interest rate cuts sounds pretty good, with liquidity easing, the crypto market might rise... but I feel like this prediction might fluctuate again. Can BTC really hold out until the end of the year? Wait, 3.4% maintained until 2028? That's way too optimistic, do you believe it or not? Interest rate cuts are good news, but the question is, will this lead to another market crash?

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gas_fee_trauma

· 01-08 20:39

The expectation of interest rate cuts is back. Can it last until 2028 this time? I'm skeptical. Liquidity abundance = rising coin prices. I've memorized this formula long ago. A 3.4% interest rate sounds good, but I'm worried the Federal Reserve will hike rates again. Wait, are they talking about "moderate" rate cuts, or are they trying to trick retail investors into entering the market again? Why does the Federal Reserve always like to "dove" (pause or delay)? Bitcoin is now tightly linked to Federal Reserve policies, which is a bit annoying. Will PCE stabilize at 2.7? I don't think it will go that smoothly. The unemployment rate at 4.6% seems quite uncertain to me. It's another case of liquidity abundance. Last time I heard this, I lost quite a bit.

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fomo_fighter

· 01-08 20:32

The expectation of interest rate cuts is back. Will it really happen this time... After so many years, I'm numb to it. Can BTC ride this wave of momentum? The key still depends on whether the Federal Reserve will actually take action. A PCE drop to 2.7% is a bit uncertain, but if low interest rate environment continues until 2028, I’ll believe it—this would be the real bottom. These past few years have been quite brutal, now I see traps everywhere. Interest rate cuts = money printing = inflation = eating dirt, it's a vicious cycle.

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ContractExplorer

· 01-08 20:32

The expectation of interest rate cuts is back. Is this time reliable? They said the same last time. Can this wave of liquidity easing really save the crypto market? Feels like just on paper. 3.4% maintained until 2028? Let's wait and see. The Federal Reserve's words are like farting. Cutting interest rates = printing money = rising coin prices? That's too simple a logic, brother. Good news is good, but it still depends on actual operations. Don't be fooled by expectations.

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