Yesterday, the Federal Reserve (Fed) announced a 0.25% cut in its benchmark interest rate, in line with market expectations. However, Fed Chairman Jerome Powell indicated that only two more rate cuts are planned for 2025 and revised the inflation projection for next year from 2.1% to 2.5%. These statements were interpreted as a more cautious stance regarding future monetary policy.
In response, the price of Bitcoin
$BTC fell by approximately 4.6% to $101,300. Ethereum
$ETH also saw a drop of around 5.96% to trade at $3,600. These movements reflect the sensitivity of the cryptocurrency market to the Fed's monetary policies.
Currently, Bitcoin is trading at approximately $104,941, with a positive variation of 2.84% compared to the previous close. The intraday high was $105,581, while the low reached $101,423.
Analysts point out that the correction in the price of Bitcoin is related to concerns about the Fed's monetary policy and the increase in interest rates on bonds, factors that can negatively influence the performance of cryptocurrencies.
In short, the recent statements by the Fed and the revisions in the economic projections for 2025 had an immediate impact on the cryptocurrency market, highlighting the correlation between US monetary policies and the behavior of digital assets.
#FedHODL