Why Is Today’s Decision So Important?
Jerome Powell, the Chairman of the U.S. Federal Reserve, isn’t just talking about U.S. banks, he’s setting the mood for the entire global economy.
When Powell announces an interest rate change, it affects the U.S. dollar, stock markets, gold, and of course
$BTC #bitcon and crypto.
Today, the Fed is expected to cut rates by 0.25%. That may sound small, but it can decide whether money flows into crypto or out of it.
1. What Is a Rate Cut and Why Does It Affect the Market?
The Fed controls interest rates → how expensive or cheap it is to borrow money.Rate cut = cheaper money → more spending, more investing → good for risk assets like Bitcoin.Rate hike = expensive money → less risk-taking → usually bad for crypto.
For crypto:
Lower rates often weaken the U.S. dollar → investors look for alternative assets → crypto demand rises.Higher rates strengthen the dollar → safer assets like bonds look better → crypto loses attention.
So, a rate cut = more liquidity → often bullish for crypto.
2.What is the Most Likely Scenario Today?
Most analysts and traders expect the Fed to:
Cut rates by 0.25%Show in its “dot plot” about 3 cuts total by end-2025Powell to say: labor market is cooling, inflation is closer to target, but tariffs are still a risk
👉 Translation: “dovish but careful.”
Crypto will likely see a modest rally (Bitcoin +2–5%, Ethereum similar).Altcoins could benefit too, but unless Powell surprises with extra dovishness, don’t expect fireworks.
3. Should You Buy During the Event?
This is where beginners need to be careful!
“Buy the rumor, sell the news”: Often, the market moves before the event, since traders already expect it.
If you buy exactly at the announcement, you risk catching a sudden whipsaw, a quick pump followed by a drop.
Smarter play: Wait to see Powell’s exact words and the market’s reaction. If he hints at more cuts ahead, that’s when the longer-term bullish trend becomes clearer.
👉 In short: The cut itself is good, but the future guidance matters more.
Conclusion
Powell’s decisions ripple across all markets, including crypto.
A rate cut is good for risk assets, but today’s move is expected.
The most likely scenario: a cut with cautious words → bullish, but not shocking.
For beginners: don’t FOMO the event. Focus on the bigger trend Powell signals.