THE DECLINE IN THE CRYPTO MARKET CONTINUES AFTER THE FED’S INTEREST RATE CUTTERS

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The US Federal Reserve (Fed) lowered its policy rate by 0.25 points to 4.25%-4.5% on December 18, 2024. This was the third consecutive interest rate cut in 2024. However, the Fed stated that interest rate cuts would be slower in 2025 and emphasized that it would take a cautious approach in the fight against inflation.

Following this announcement, there were sharp declines in cryptocurrency markets. The price of Bitcoin (BTC) fell by 5.8% to $99,279. The intraday high was $105,487 and the low was $98,809.

Ethereum (ETH) also fell 7.2% to $3,587, with intraday highs of $3,895 and lows of $3,562.

Analysts say that the hawkish statements made by the Fed after the interest rate cut decision reduced investors’ risk appetite, which increased the selling pressure in cryptocurrency markets. In particular, the signal that interest rate cuts will slow down in 2025 increased uncertainty in the markets and led investors to be cautious.

Technical analysis,

It shows that Bitcoin is testing the support point at $99,000. A permanent break below this level could cause the decline to deepen. For Ethereum, the $3,550 level is watched as a critical support. Analysts emphasize that in the current market conditions, it is necessary to be cautious and take positions with low volume transactions.

As a result, the Fed’s interest rate cut and uncertain future policies have led to fluctuations in cryptocurrency markets. Investors are advised to pay attention to risk management by closely following market movements.

- The information contained in this article is never investment advice, but is for accurate and up-to-date information purposes. STAY TUNED❗️ Be sure to do your own research.

Source:

• Federal Reserve issues FOMC statement. (2024, December 18). Federal Reserve.

• Fed slashes rates but signals slower pace of cuts in 2025 - Dow plunges more than 1,100 points. (2024, 18 Aralık). New York Post.

• Ethereum Forecast and Analysis for December 19, 2024. (2024, 19 Aralık). Forex24.pro.