Crypto Holds Steady ⚖️ — Bitcoin and Market Stay Neutral Despite Fed’s 25bps Rate Cut
The Federal Reserve’s decision to lower interest rates by 0.25% met market expectations, signaling a steady path ahead. Two additional cuts of 50 basis points are anticipated later this year amid ongoing economic concerns.
Following the Fed’s move, Bitcoin, Ethereum, and major altcoins showed minimal price movement, reflecting a market that had largely priced in the rate reduction.
On Wednesday, the Fed announced a 25 basis point cut—the first rate reduction of 2025—consistent with forecasts. However, labor market worries linger, prompting most Fed officials to expect two more quarter-point cuts before year-end.
Newly appointed Governor Stephen Miran was the sole dissenting vote, advocating for a larger 50 basis point cut. Meanwhile, six officials voted against further reductions, and nine supported two additional cuts this year.
The Fed noted, “Recent data indicate that economic growth has slowed in the first half of the year. Job gains have moderated, and while unemployment has risen slightly, it remains low. Inflation pressures persist.”
This announcement comes amid continued calls from former President Donald Trump for rate cuts, including threats to remove Fed Chair Jerome Powell.
Lower interest rates tend to make government bonds less attractive, prompting investors to seek higher returns in equities and cryptocurrencies.
At the time of publication, Bitcoin was trading near $116,000 after briefly surpassing $117,000 before the Fed meeting. Ethereum (ETH), XRP, Binance Coin (BNB), and Solana (SOL) saw modest gains of around 2%.
The subdued market reaction suggests investors had already factored in the Fed’s decision.
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