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Fed Rate Cut Eases Recession Risks as MOVE Index Falls to Fresh Low, Signaling Biggest Annual Decline in Bond Volatility Since 1988

Fed Rate Cut Eases Recession Risks as MOVE Index Falls to Fresh Low, Signaling Biggest Annual Decline in Bond Volatility Since 1988

CoinotagCoinotag2025/12/29 23:51
By:Coinotag

COINOTAG News reports that the Fed‘s rate-cut stance has helped ease recession fears, while the ICE BofA MOVE Index, a key gauge of bond-market volatility, is hovering near 59—the lowest reading since October 2024. After trading around 99 at end-2024, the MOVE Index is on track to post one of the most substantial annual declines on record (data going back to 1988), a move historians compare with the 2009 crisis.

From a crypto-market perspective, the softer backdrop for bond volatility could improve funding conditions and contribute to a more measured risk sentiment in crypto markets. With liquidity dynamics in focus, participants will closely monitor policy guidance, macro data, and cross-asset correlations affecting assets such as Bitcoin and other major digital assets.

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