According to ChainCatcher, the Federal Reserve announced on the 18th that it would lower the target range of the federal funds rate by 50 basis points, exceeding market expectations. This is the first interest rate cut by the Federal Reserve in four years, and it also marks the shift from a monetary policy tightening cycle to an easing cycle. The dot plot shows that the Federal Reserve expects to cut interest rates by another 50 basis points this year.
According to 4E Exchange, after the interest rate decision was announced, the US stock market went through a roller coaster ride, with the three major indexes rising and falling, and finally all closed slightly lower, with the Dow Jones and S&P 500 hitting record highs. Non-US currencies generally rose, crude oil fell slightly, gold fell after hitting a new high, and the crypto market generally rose. As of press time, Bitcoin rose 3.26% and Ethereum rose 3.1%.
As the interest rate cut cycle begins and risk-free interest rates continue to decline, institutional investors may increase their investment in the crypto market to seek higher returns. However, it should be noted that although interest rate cuts usually have a positive impact on risky assets, the substantial interest rate cuts have also caused some markets to question the health of the US economy, which has an important impact on prices. 4E reminds you to pay attention to the recent market volatility risks and allocate assets reasonably.
