The U.S. Federal Reserve has made its first major rate cut in four years, reducing the rate by 50 basis points to 4.75%-5%. Here's what this means for BTC and the market.
Fed Rate Cut and Future Plans
The Fed announced the cut, citing confidence in inflation moving towards the 2% target. Officials expect rates to drop further, with projections indicating another 50 bps cut by year-end, possibly reaching 4.4% by December.
Impact on Crypto and Bitcoin
Following the rate cut, Bitcoin saw a brief 1.4% spike to $61,000 before cooling off. Experts are predicting potential swings of 2%-3% in Bitcoin’s price due to this rate change. Crypto stocks like Coinbase and MicroStrategy also saw gains of 2%-3%.
What to Expect Next
With more cuts expected, crypto markets may experience more volatility. However, some analysts warn that shrinking rate differences could lead to risks like the August crash. Traders should keep an eye on the Fed’s next moves for further market shifts.
Stay alert for more updates as the Fed continues to adjust its policies and the market reacts.
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