Crypto Stays Calm ⚖️ – Bitcoin, Market Neutral Despite Fed’s 25bps Cut

Market expectations were met when the Fed cut rates by 0.25%.

Two further decreases of 50 basis points are expected this year.

Bitcoin, Ethereum, and altcoins experienced minimal change when the Fed lowered rates.

Bitcoin (BTC) and most prominent cryptocurrency tokens maintained stable on Wednesday despite the Federal Reserve's (Fed) 25-bps interest rate cut, according to market forecasts.

Following Fed rate cuts, crypto market remains quiet.
Wednesday's FOMC announcement that it will decrease interest rates by 25 basis points met market expectations.

Due to labor market worries, most committee members expect two further cutbacks before year's end. The Fed's first rate decrease in 2025 had been anticipated for weeks.

Governor Stephen Miran, inducted in this week as a Reserve Board of Governors member, was the lone official to vote for a 50 bps drop. Six officials voted for no further cuts, while nine voted for two more quarter percentage point cuts this year.

"Recent indicators suggest that growth of economic activity moderated in the first half of the year," the Fed stated Wednesday. Job increases have slowed and the unemployment rate has risen but remained low. Increased inflation persists."

This follows US President Donald Trump's repeated calls for rate reduction, including threats to dismiss Fed Chair Jerome Powell.

Lower rates make government bonds less appealing, so investors turn to equities and crypto for bigger yields.

Bitcoin traded at $116,000 at publishing, despite surging beyond $117,000 before the FOMC meeting. Ethereum (ETH), XRP, BNB, and Solana (SOL) gained little over 2% after the verdict.

Investors seem to have priced in the reduction given the subdued response.

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