The Federal Reserve’s Open Market Committee (FOMC) announced a 25 basis point rate cut on Wednesday, bringing the federal funds rate target to 3.75%-4%.
Wednesday Reduce rate It was “fully priced in” by investors, who were widely anticipating it resolutionAccording to Matt Mina, market analyst at investment firm 21Shares. Mina also predicted:
“November has historically been one of the best-performing months for Bitcoin, with positive returns in 8 of the past 12 years, with average returns of 46.02%. Overall, we remain moderately risk-on and see a reliable path for Bitcoin to break its all-time high before the end of the year.”
Asset prices remained flat or fell by modest amounts on Wednesday following the FOMC decision, with the price of Bitcoin (Bitcoin) It decreased by about 2.4% At the time of writing, following comments from Federal Reserve Chairman Jerome Powell comments Which suggests that FOMC members are divided on whether to cut interest rates in December.
“The unexpectedly tough opposition from a regional Fed chief highlights that future moves are becoming more controversial,” Michael Pearce, deputy chief U.S. economist at consultancy Oxford Economics, said in comments shared with Cointelegraph.
Growing Disagreement between the Federal Open Market Committee This suggests a deep Fed split, which could hold back cryptocurrency prices by starving the market of liquidity that can flow into digital and other risky assets.
Related to: Bitcoin and Ether ETFs rebound in the US as Powell signals interest rate cuts
Market participants are gauging the likelihood of additional interest rate cuts in 2025
Federal Reserve The 2025 interest rate cutting cycle has begun in September with an initial cut of 25 basis points, which helped spur Bitcoin prices to all-time highs of over $125,000.
More than 56% of market participants expect the Fed to cut interest rates to a target window of between 3.5% and 3.75% in December, according to Data From the Chicago Mercantile Exchange (CME).
In September, several commercial banking giants, including Bank of America, Citigroup and investment bank Goldman Sachs… Expect at least two interest rate cuts In 2025.
Cuts would usually boost asset prices. However, the widely expected cuts may be overshadowed by the looming uncertainty they have sparked Trade tensions between China and the United StatesWhich created investor hesitation.
magazine: Cryptocurrency traders ‘fooling themselves’ with price predictions: Peter Brandt
