Federal Reserve Reduces Interest Rates by a Quarter Point: Anticipated Impact on Bitcoin's Value
In a move that was largely anticipated by the financial markets, the US Federal Reserve made an interest rate cut of 25 bps in 2025. The decision, announced during the FOMC meeting that occurred yesterday and today, was in line with the expectations of experts.
The primary cryptocurrency, Bitcoin (BTC), experienced a significant increase in late August, partly due to a speech from Jerome Powell from Jackson Hole, where he hinted that the US central bank would cut rates. BTC jumped to a four-week peak of $117,200 earlier today, but the Fed's announcement did not cause a significant immediate reaction in BTC's price.
Interestingly, if BTC continues to trade near its pre-announcement level, it may suggest that the markets had already priced in this rate cut. Most market commentators believe the financial markets, including crypto, had already priced in this interest rate cut.
After the interest rate reduction, BTC continues to trade at around $116,000. However, BTC slumped in the following hours by almost two grand. It will be interesting to see how BTC reacts in the following hours and days due to this interest rate cut.
Despite extensive search results, there are no specific market experts named in the last month predicting how BTC will react after the US Federal Reserve's timing of interest rate cuts in 2025. The sources provide price forecasts for cryptocurrencies like Bitcoin Cash, Cardano, and Ethereum but do not mention recent expert predictions specifically about Bitcoin's response to the Fed's 2025 rate cut events.
The first interest rate cut of the year 2025 marked a significant event in the financial markets, and the reaction of Bitcoin, as one of the most influential cryptocurrencies, will continue to be closely watched by investors and analysts alike.
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