Coinbase Says Rate-Cut Odds Are ‘Mispriced’ as Fear Index Hits Extreme Lows

[chainsniff]

Coinbase Institutional argued today that markets are underestimating the probability of a December rate cut.
“Recent tariff research, private market data, and real-time inflation indicators suggest otherwise,” it said, noting that tariff hikes can lower inflation and raise unemployment — conditions that often accelerate cuts.

Meanwhile, sentiment across the crypto market remains bleak.
The Crypto Fear & Greed Index dropped to an ‘Extreme Fear’ level of 14, reflecting heavy pessimism despite arguably improving macro conditions.

Analysts warn that such disconnects — bearish sentiment during bullish macro shifts — often mark major market turning points.

[Nahid Hossen]

If rate cuts are mispriced, markets might react hard when reality hits.

[Abdul Khan]

Extreme lows on fear index show how fragile sentiment is right now.