THE DECLINE IN THE CRYPTO MARKET CONTINUES AFTER THE FED'S INTEREST RATE CUT

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The US Federal Reserve (Fed) lowered the policy rate by 0.25 points to 4.25%-4.5% on December 18, 2024. This was the third consecutive interest rate cut in 2024. However, the Fed stated that interest rate cuts would be slower in 2025 and emphasized that it would take a cautious approach in the fight against inflation.

Following this statement, there were sharp declines in cryptocurrency markets. The price of Bitcoin (BTC) fell by 5.8% to $99,279. The intraday high was $105,487 and the low was $98,809.

Ethereum (ETH) also fell by 7.2% to $3,587. The intraday high was $3,895 and the low was $3,562.

Analysts state that the hawkish statements made by the Fed after the interest rate cut decision reduced investors' risk appetite, which increased the selling pressure in cryptocurrency markets. In particular, the signal that interest rate cuts will slow down in 2025 increased uncertainty in the markets and led investors to be cautious.

Technical analysis,

sources ..

• Federal Reserve issues FOMC statement. (2024, December 18). Federal Reserve.

• Fed slashes rates but signals slower pace of cuts in 2025 - Dow plunges more than 1,100 points. (2024, December 18). New York Post.

• Ethereum Forecast and Analysis for December 19, 2024. (2024, December 19). Forex24.pro.