FED INTEREST RATE DECISION AND FLUCTUATING IN CRYPTOCURRENCY MARKETS
FED's Interest Rate Decision:
On December 18, 2024, the US Federal Reserve (Fed) lowered the policy rate by 25 basis points to 4.25%-4.50%. This decision met market expectations and supported efforts to reduce inflation to 2.3%. However, the Fed has signaled that it plans to slow down the pace of interest rate cuts by taking a more cautious stance for 2025 (AP News).
Cryptocurrency Market Movements:
Bitcoin (BTC) fell after reaching a new peak above $108,000 on December 17 and fell to $104,554 with a 2.44% loss during the day (Cointelegraph). Ethereum (ETH) has dropped below the $ 3,900 support and has given signs of a pullback to $ 3,700 (The Crypto Basic).
Market Outlook:
The Fed's cautious monetary policy and volatility in cryptocurrencies indicate that this is a period that investors should be careful about. In this volatile process, it is critical to closely follow economic data and market trends.
Conclusion:
Although the Fed's rate cut aims to support growth, the lack of a clear direction for 2025 may create uncertainty in the markets. This volatility in cryptocurrencies requires investors to develop more cautious strategies.
References
• AP News. (2024). The Federal Reserve is set to cut key rate but consumers might not feel much benefit anytime soon.
• Cointelegraph. (2024). Price analysis 12/18: BTC, ETH, XRP.
• The Crypto Basic. (2024). Ethereum risks breakdown to $3,378 as bears threaten $3,800 support.
- The information contained in this article is never investment advice, but is for accurate and up-to-date information purposes. STAY TUNED❗️ Definitely do your own research❗️
