Cryptocurrency Market Continues to Rise After Fed Cuts Rates by 25 Basis Points
● At the meeting on November 7, the Federal Open Market Committee (FOMC) of the Federal Reserve decided to lower the interest rate by another 25 basis points, from 4.75% to 4.5%. Despite this announcement, the cryptocurrency and stock markets did not show much volatility, possibly because investors had already anticipated this rate cut.
● The price of BTC slightly increased by 1% in the past 24 hours, trading at $76,304. Meanwhile, ETH recorded a significant increase of 7.4%, reaching $2,927. Solana (SOL) continued to rise strongly, hitting the $200 mark with an increase of 5.7%. The total market capitalization of the cryptocurrency market rose by 1.3%, approaching $2.7 trillion. $BTC
● Notably, tokens associated with Real World Asset (RWA) protocols surged by 12% in the past 24 hours, leading the market with an increase nearly 5 times the market average.
● In the US stock market, various indices remained stable after the FOMC decision. The S&P 500 index rose by 0.9%, and the Nasdaq index increased by 1.62%. It is noteworthy that these indices had already shown an upward trend before the interest rate decision.
● Federal Reserve Chairman Jerome Powell stated that despite uncertainties in the outlook, the economy is still steadily expanding. He noted that there are some signs of a slowdown in the job market, with a slight uptick in the unemployment rate, but it remains at a low level.
● Regarding inflation, Powell confirmed that the Fed's 2% inflation target remains a priority, but current inflation levels are still high. Future interest rate decisions will depend on economic data and growth prospects, requiring a balance between employment and inflation risks. However, he also pointed out that "one or two months" of unfavorable data would not change the Fed's interest rate decisions.
● On the political influence front, Powell stated that election results would not affect the Fed's future interest rate policy.