Recent information regarding the potential cut of the Federal Reserve's interest rate has attracted attention in the cryptocurrency market, causing significant price fluctuations, especially for Bitcoin.
Federal Reserve Rate Cut Speculation
As of April 7, 2025, the CME's 'FedWatch' data indicates a 54.6% chance of a 25 basis point rate cut in May. This possibility has already stirred considerable market reactions and speculation.
Bitcoin Prices and DeFi Liquidity
As of April 7, 2025, Bitcoin trades at $76,730.15, reflecting a notable downturn of 7.20% in the last 24 hours. There is a general caution among investors regarding prospective liquidity reductions.
Overview of Current Market Situation
The Coincu research team suggests that current market attitudes highlight a preparedness for potential financial restructuring; however, the resilience of cryptocurrencies and their adaptability remain uncertain.
Therefore, speculation about a Federal Reserve rate cut has led to a significant decline in Bitcoin prices and poses a risk to liquidity in the DeFi sector. Investors are adjusting their strategies amid high volatility.
