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The U.S. Federal Reserve has decided to <a href="https://x.com/LiveSquawk/status/1854599936178037152" rel="noopener noreferrer nofollow">implement</a> a 25-basis-point rate cut following its two-day meeting.
This is in line with analysts' expectations, which is why stocks and Bitcoin did not experience substantial volatility. Every major brokerage, including Goldman Sachs, Barclays, and BofA Global Research, predicted that the Fed would opt for a 25-basis-point cut. A whopping 99% of Polymarket users also placed their bets on the aforementioned scenario. Hence, any other decision would have been extremely shocking.
The largest cryptocurrency is currently trading at $76,631, according to data provided by CoinGecko. Earlier today, the leading cryptocurrency hit a new record high of $76,637.
As<a href="https://u.today/bitcoin-surges-as-fed-goes-for-massive-rate-cut" rel="noopener noreferrer nofollow">reported by U.Today</a>, the Fed surprised the market with a mighty 50-basis-point rate cut in September in response to cooling inflation. Back then, Federal Reserve Chair Jerome Powell stressed the importance of achieving its much-coveted 2% target without causing a substantial increase in unemployment.
The first rate cut in four years has helped to substantially boost the price of Bitcoin. The cryptocurrency took a severe hit in 2022 due to several rate hikes that were meant to rein in out-of-control inflation. The same applies to U.S. equities.
As<a href="https://x.com/RyanDetrick/status/1854350014425788872" rel="noopener noreferrer nofollow">noted</a> by Ryan Detrick, chief market strategist at Carson Group, the Fed serves as a "tailwind" for the stock market. "They've done this 20 other times and a year later stocks were higher 20 times. As we've been saying all year, the Fed is a tailwind," he said.
Polymaket bettors also see a 66% chance of another 25-basis-point rate cut being implemented in September. <a href="https://u.today/bitcoin-reacts-to-feds-rate-cut-decision" rel="noopener noreferrer nofollow">Read original article on U.Today</a>

Bitcoin Reacts to Fed's Rate Cut Decision

U_Today

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