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Home News A certain trader is once again making a contrarian bet, bullish on a 25 basis point rate cut in January next year.

A certain trader is once again making a contrarian bet, bullish on a 25 basis point rate cut in January next year.

A certain trader is once again making a contrarian bet, bullish on a 25 basis point rate cut in January next year.

BlockBeats News, December 15, according to PolyBeats monitoring. Currently, the probability of no change in the interest rate for the Fed’s January meeting is as high as 78%, while the probability of a 25 basis point rate cut is only 21%. Market consensus is clear: despite some easing in inflation, the Fed usually waits for the economy to stabilize for a period of time before taking action, making it unlikely for a major pivot at the beginning of the year.

However, the actions of the account thiswaysir are completely contrary: he made a contrarian bet of $30,000 that there will be a 25 basis point rate cut in January, and he even holds a “lottery position” of 100,000 units for a 50 basis point rate cut.

This is not the first time he has bet against market consensus. In mid-November, when mainstream market sentiment believed that an economic recession and a drop in inflation would force the Fed to cut rates by 50 basis points (with the probability peaking at 80%), thiswaysir contrarily bought nearly $15,000 at an average price of 32c, accurately betting on a 25 basis point rate cut in December. This trade ultimately made him a profit of nearly $25,000. This is also his only historical trade.

If thiswaysir’s interpretation of the market is correct once again, the initial $15,000 he invested will compound to $150,000 by January.

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