Chair

Jerome Powell

Bitcoin

Read

Reserve

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The U.S. Federal Reserve has <a href="https://x.com/LiveSquawk/status/1869458376146776459" rel="noopener noreferrer nofollow">decided</a> to cut the benchmark interest rate by 25 basis points, which is in line with analysts' expectations.
The price of Bitcoin is currently trading at $103,729 on the Bitstamp exchange following the announcement, slipping by more than 1%.
As <a href="https://u.today/bitcoin-reacts-to-feds-rate-cut-decision" rel="noopener noreferrer nofollow">reported by U.Today</a>, the Fed started cutting interest rates in September. The price of Bitcoin has rallied by more than 70% since then.
The rate has now been lowered to the 4.25%-4.50% range following the most recent cut.
However, some analysts now expect the Fed to adopt a more hawkish tone in 2025 due to concerns about stickier-than-expected inflation.
BNP Paribas, for instance, predicted that the Fed will not implement another rate cut until mid-2026. This likely will not bode well for risk-on assets of the likes of Bitcoin.
During his upcoming press conference, Fed Chair Jerome Powell is likely to provide markets with crucial hints about whether or not the Fed is inclined to scale back easing.
The Fed's policy statement shows that the central bank is unsure whether it should continue cutting rates.
Fed swaps are now pricing in less easing in 2024 following the Fed's revised dot plot.
The median "dot" has now moved 0.50% higher to 3.875%. "I don't think markets will like that much," Jeroen Blokland, founder and manager of the Blokland Smart Multi-Asset Fund, said on social media.
The central bank is now widely expected to keep rates unchanged in January. US rate futures are now pricing in just two rate cuts in 2025. <a href="https://u.today/breaking-bitcoin-reacts-to-feds-rate-decision" rel="noopener noreferrer nofollow">Read original article on U.Today</a>

Breaking: Bitcoin Reacts to Fed's Rate Decision

U_Today

Other articles published on Dec 18, 2024

Unlikely Winners”: The Altcoins Set to Outperform before year-end.

SOL & TRX Whales Eye Hidden Gem for Massive Returns

Ethereum spot ETF net inflow reaches $145m

Qubetics Presale Offers 10% Discount, Making It the Best Coin to Invest in This Weekend as Cosmos...

Bank stocks and not Bitcoin are the top play for 2025 – Wall Street

Sophon Mainnet Goes Live with $500M TVL and Strategic Industry Collaborations (18 Dec)

Join our free newsletter for daily crypto updates!