Citibank predicts three rate cuts by the Federal Reserve in 2026, each by 25 basis points—how should the crypto market respond?

Question

【Crypto World】Citigroup's latest Federal Reserve policy forecast is out. According to their analysis, the Federal Reserve may cut interest rates three times next year.Specifically, the first rate cut is expected in January, with a 25 basis point decrease. Another cut is anticipated in March, also by 25 basis points. The next move is not expected until September, again with a 25 basis point reduction.This means that by the end of the year, the Fed could have lowered rates by a total of 75 basis points. The impact on the overall asset allocation landscape should not be underestimated. Generally, a rate-cut cycle tends to boost risk assets, including the cryptocurrency market. Lower interest rates mean liquidity easing and reduced capital costs, which historically support digital assets like Bitcoin.Of course, the actual implementation will depend on inflation data and employment reports. However, based on forecasts from institutions like Citigroup, market expectations for liquidity improvement by 2026 remain quite consistent.

DefiOldTrickster · Accepted Answer

75bp rate cut? It depends on whether the inflation data cooperates. I&#39;ve heard Citibank make this prediction too many times, and the result is a 50-50 chance... However, if it really does drop, there is indeed arbitrage space in terms of liquidity, so we need to keep a close eye on the clearing price.

AlphaBrain · Answer

I am skeptical about Citibank's forecast. Historically, their policy judgments have also been wrong. Instead of waiting for interest rate cuts, it's better to start positioning now.

To put it simply, the speculation about rate cuts has been overhyped. When the time comes, it will depend on inflation. Bitcoin doesn't care what Citibank says.

75 basis points sounds appealing, but can such an easing environment last until the end of the year? It feels a bit overly optimistic.

The idea that a rate cut cycle would benefit risk assets is an old story. The key is when it will actually happen. It's still too early to say now.

This rhythm... January, March, September, it feels a bit like a seller's show. It's more reliable to focus on actual economic data.

GasFeeCrier · Answer

Citibank talks nicely, but when inflation rebounds, they'll still stay put. Don't believe so much in what Wall Street folks say about the crypto world.

HackerWhoCares · Answer

Citibank is spinning another story. 75bp sounds good, but who knows if it will actually be cut...

ChainMaskedRider · Answer

Wait, is the timeline Citi mentioned reliable? It feels like they always make these predictions

If the interest rate cuts really happen, I should quickly convert my USD into Bitcoin

The third cut only in September? That's too long; by then, the market will have already changed

But the easing of liquidity is indeed a positive, the history is right there

BtcDailyResearcher · Answer

Is Citigroup's prediction reliable? The gap between the interest rate cut in September mid-year feels a bit strange.

A 75bp rate cut sounds good, but whether it can actually be implemented is the key. If inflation picks up again, all efforts will be in vain.

This round of benefits will definitely still go to the crypto circle. The traditional financial logic is already outdated in the face of cryptocurrencies.

Wait, could a rate cut instead trigger stagflation? At that time, cryptocurrencies might have to follow the correction.

The key in the second half of the year still depends on the action in September. If it shrinks or is delayed, it will directly break the plan.

SocialFiQueen · Answer

75bp rate cut? Please stop just talking on paper; inflation is the real devil.

GetRichLeek · Answer

Citibank spoke so nicely, and they made the same prediction last year. But what happened... A 75 basis point rate cut sounds great, but these people were already slapped in the face by reality a long time ago.

MercilessHalal · Answer

A 75 basis point rate cut sounds good, but is Citi's forecast more accurate... They're always so optimistic, but what's the result?

MetadataExplorer · Answer

A 75bp rate cut sounds good, but is Citi's forecast reliable... The expected rate cut results in a surprise rate hike, which is awkward.

Citibank predicts three rate cuts by the Federal Reserve in 2026, each by 25 basis points—how should the crypto market respond?

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