Cryptocurrency markets fall after the Fed's press conference

As we mentioned last week, we could expect significant volatility in the crypto markets following the FOMC meeting and the press conference of Fed Chairman Jerome Powell, and that's exactly what happened after a more restrictive approach by the Fed looking towards 2025.

Although the Fed cut rates by 25 basis points, which was already widely anticipated, the unexpected part was the revision of its outlook for 2025, reducing the expected rate cuts from three to just two, a total of 50 basis points. Additionally, they raised their inflation expectations for the end of 2025 from 2.1% to 2.5%.

As a result, the markets reacted with massive sell-offs. The total crypto market capitalization fell by 14%, dropping from $3.73 trillion (all-time high) to $3.2 trillion. Altcoins were the most affected, as Bitcoin's dominance increased despite the overall market decline.

The question now is whether we will see a deeper correction as Powell's comments are digested by the markets, or if investors will take the opportunity to "buy the dip" and remain optimistic about the long-term outlook.

#FED #SEC #bitcoin $BTC