The cryptocurrency market experienced a significant downturn, resulting in over $850 million in losses due to liquidations following the Federal Reserve's announcement of a 25 basis point reduction in its benchmark policy rate. Federal Reserve Chair Jerome Powell's cautious approach to future rate adjustments in 2025 created market uncertainty and led to widespread sell-offs. Powell highlighted that inflation, although decreasing steadily, was slower than expected, prompting the Fed to revise its 2025 inflation forecast to 2.5%.
