The cryptocurrency market experienced a significant downturn, resulting in over $850 million in losses due to liquidations following the Federal Reserve's announcement of a 25 basis point reduction in its benchmark policy rate. Federal Reserve Chair Jerome Powell's cautious approach to future rate adjustments in 2025 created market uncertainty and led to widespread sell-offs. Powell highlighted that inflation, although decreasing steadily, was slower than expected, prompting the Fed to revise its 2025 inflation forecast to 2.5%. This adjustment could tighten economic conditions, affecting liquidity in financial markets, including cryptocurrencies. Bitcoin and other major cryptocurrencies like Ethereum faced substantial losses, with liquidations totaling $869.39 million in the past 24 hours. Despite these challenges, crypto traders remain optimistic, as reflected in the strong bullish sentiment and increased investments in Bitcoin-related vehicles. The market dynamics underscore the intricate relationship between macroeconomic policies and crypto markets, with investors turning to digital assets for portfolio diversification amidst economic uncertainties. Read more AI-generated news on: https://app.chaingpt.org/news

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