On Sep. 17, the Federal Reserve announced its much-awaited decision on interest rates. As expected, the central bank has decided to cut rates by 25 basis points.
Though Bitcoin, Ethereum , and XRP rose following the announcement, all these cryptocurrencies soon made a retreat on the charts.
Nonetheless, traders on the popular crypto-based prediction market, Polymarket, nailed the Fed's latest announcement.
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Users on Polymarket had predicted that there is a 91% chance of the Fed lowering rates by 25 bps on Sep. 17. And, that is exactly how it played out.
As per Polymarket traders, there was a 6.7% chance of a rate cut of more than 50 bps and only a 2.5% chance of no change to rates. There wasn't even a 1% chance of the Fed hiking the rates more than 25 bps.
In fact, the Fed's rate cut event has attracted more than $188 million in Polymarket trading so far.
The reason traders on the platform were so optimistic about a rate cut today is due to a mix of factors such as high inflation and the addition of fewer jobs in August.
Even Fed Chair Jerome Powell had dropped a hopeful signal to the market when he hinted at a possible rate cut while delivering a speech more than a month ago at Jackson Hole, Wyoming.
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Launched in 2020, Polymarket is the world's largest prediction market. The platform lets traders make predictions on a wide range of events, such as crypto prices, election results, monetary policy, etc., using cryptocurrency.
Edited by: Mehab Qureshi
This story was originally reported by TheStreet on Sep 17, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
