The US Federal Reserve announced a 25 basis point rate cut and revised its 2025 inflation forecast, leading to a sharp decline in leading cryptocurrencies.
Fed Rate Cut and Its Consequences
The Federal Reserve announced a 25 basis point cut to its benchmark policy rate and signaled fewer rate cuts in 2025. The inflation forecast was also raised from 2.1% to 2.5%.
Crypto Market Reaction to Powell's Announcements
Following Jerome Powell's press conference, Bitcoin dropped 4.6% to $101,300, while Ethereum fell 5.96% to $3,600. Although rate cut expectations persist, the revised inflation forecasts have alarmed investors.
Analysts' Bitcoin Price Projections
Crypto analyst Skew noted that the Bitcoin price drop corrected the "positioning" in the market. Restating $100,000 - $101,400 levels is seen as crucial for market stability.
The impact of the Fed's decisions on the market continues to unfold. Investors should keep a close eye on further announcements and policy changes to better understand the future of the cryptocurrency market.
