New developments have emerged in the Wall Street investment banking circle—recent assessments from the FICC department of a top-tier investment bank indicate that the Fed is definitely going to cut interest rates at the December meeting.

The reasons they provided are quite hardcore: the employment data continues to be disappointing, and risk control needs to be planned in advance. More importantly, the market has already taken this matter as a done deal, and the pricing is in place.

The interesting thing is that the economic data calendar before the December meeting is sparse, coupled with the remarkably consistent market expectations, which basically "nailed down" the rate cut. According to their logic, it’s better to cut rates now and then reassess based on the three new non-farm payroll data released in January; this is the more prudent approach.

In simple terms, it is to leave room for policy - after all, the trends in the labor market are not yet completely clear. If this round of operations is implemented, liquidity expectations for risk assets, especially in the cryptocurrency market, will have to be recalculated. BTC's recent performance is probably also digesting this type of macro narrative.