This week, Bitcoin prices have shown volatility in response to significant economic events. In the coming weeks, more major changes are expected, including appointments of crypto-friendly officials.
Fed's Interest Rate Decision
The US Federal Reserve announced a 25 basis point cut in interest rates. October's inflation figures exceeded expectations, though November remained within anticipated levels. Concerns about a potential pause in rate cuts were predominant during the meeting.
Fed's Projections
The Fed's median interest rate projection for the next two years is 3.375%. Unemployment is expected to be at 4.3% by the end of 2025. The PCE inflation projection for 2025 is 2.5%. The Fed maintains its long-term GDP growth forecast at 1.8% and will evaluate new data and risks for further adjustments.
Future Changes and Market Reaction
Some Fed officials oppose further rate cuts. Futures markets have priced in a 90% likelihood of no rate changes. At 10:30 pm, Powell is expected to provide additional comments on the economic outlook.
The Fed's decision to cut interest rates impacts the cryptocurrency market, causing fluctuations in Bitcoin prices. This decision may be a key factor in further economic changes.
