Breaking News!!! The recent interest rate cut by the Federal Reserve has caused market turbulence

Tap the icon to go live and chat!

The recent interest rate cut and economic forecasts by the Federal Reserve have shocked the market. Although the market expected a 25 basis point rate cut, ongoing inflation has led to a reduction in the anticipated number of cuts in 2025, resulting in significant price volatility. This has caused a widespread sell-off of risk assets, leading to heavy daily losses across the market.

Global markets and the cryptocurrency market have faced severe shocks

After the Federal Reserve announced this news, the Nasdaq index fell by 3.56%, and the S&P 500 index fell by 2.95%. The cryptocurrency market was also affected by this substantial decline. Bitcoin (BTC) $93,944

Market participants pointed out that the fundamental reason for this decline is not the Federal Reserve's interest rate decision; rather, the overly optimistic market sentiment is the primary cause of this drop. The swift, one-sided rise of risk assets after the election has made the market susceptible to shocks.

The Federal Reserve's forward-looking forecasts have heightened concerns

The Federal Reserve's predictions for 2025 interest rates are below market expectations, with prior expectations of three rate cuts, but only two actual cuts, leading to heightened market panic, persistent inflation, and a cautious approach to policy decisions by the Federal Reserve, negatively impacting investors' perceptions of future risks.

As volatility in the cryptocurrency market increases, many investors are warning about the market's instability. Experts emphasize the need for careful strategy formulation during such times and preparation for shocks. Notably, the market needs a new balance level to counterbalance the one-sided trends following the U.S. presidential election.

Tap the icon to go live and chat!