Is cryptocurrency at risk after the Federal Reserve makes its decision?

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This is a new analysis and very important market update brought to you by YOUPO. In today’s article, we will delve into the Federal Reserve meeting and its far-reaching decisions. We will provide a comprehensive economic analysis, discuss the fundamentals of the market, and focus on technical analysis to predict expectations for the coming days and weeks.

Today’s article is filled with valuable insights, and I kindly ask everyone to be as generous as ever in your support. Now, let us embark on this journey and explore the main topics in depth.

Federal Reserve Meeting: Key Points

As you all know, December 17th to 18th is the date of the Federal Reserve meeting, and investors are eagerly anticipating this event, much like children waiting for Santa Claus. However, this meeting does not bring gifts but decisions regarding interest rates and economic policy for 2025.

Overall, the outcome is a rate cut of 25 basis points, bringing the interest rate down to 4.25%. This aligns with analysts' expectations, who have long predicted this adjustment. While this decision is considered highly positive and was anticipated, as always, things in the financial markets are never simple.

Jerome Powell's Speech and Market Reaction

Jerome Powell shattered the celebratory atmosphere in the financial world with his comments on monetary policy for 2025. His tone was serious, like a teacher threatening students with failure, announcing that there will only be one rate cut next year, despite analysts hoping for three. It’s like being promised a lavish dinner but only receiving a small portion of it.

Powell also emphasized that the Federal Reserve will not rest until inflation returns to 2%, which has been their sacred goal for years. Currently, the inflation rate is at 3.1%. Although these statements are not alarming, the market begins to feel uneasy, particularly with discussions about new President Donald Trump potentially sparking a trade war with China, reminiscent of arguments on the playground.

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