Federal Reserve Open Market Committee announced on Wednesday a reduction of 25 basis points in the Federal Funds Rate. This brings it down to between 3.75% and 4%.
Wednesday’s rate cut It is a good idea to use “fully priced in” The investors who had anticipated this event. decisionMatt Mena is a 21Shares analyst and market expert. Mena has also predicted:
“November has historically been one of Bitcoin’s best-performing months, with positive returns in 8 of the past 12 years, averaging 46.02% returns. Overall, we remain moderately risk-on and see a credible path for Bitcoin to break its all-time high before year-end.”
After the FOMC announcement, Wednesday’s asset prices fell modestly or remained unchanged. Bitcoin is still the most expensive.BTC) falling by about 2.4% As of the date of this writing, Federal Reserve Chair Jerome Powell has been reappointed. comments FOMC is signaling its members’ dissent on whether to cut rates in December.
“The unexpected hawkish dissent from a regional Fed president highlights that future moves are becoming more contentious,” Michael Pearce is the deputy chief US economist of Oxford Economics. He shared his comments with Cointelegraph.
Growing dissent among the FOMC This could be a sign of a Fed that is deeply divided, and this could dampen crypto prices as it could starve the market for liquidity which would otherwise flow to digital assets or other high-risk investments.
Related: US Bitcoin and Ether ETFs rebound as Powell signals rate cuts
Participants in the market assess whether there will be additional rate reductions by 2025
Federal Reserve began the 2025 rate-cutting cycle In September, the initial cut of 25 basis points helped push BTC to record highs exceeding $125,000.
Market participants are expecting the Fed to reduce interest rates in December to an target range of 3.5% to 3.75%, according to data Chicago Mercantile Exchange.
In September several major commercial banks, such as Bank of America Citigroup and Goldman Sachs Investment Bank, were hacked. forecast at least two rate cuts In 2025, there will be a new generation of borrowers.
The price of assets would increase if the cuts were made. The looming uncertainties may overshadow the much-anticipated cuts. trade tensions between China and the USInvestors are hesitant to invest.
Magazine: Crypto traders ‘fool themselves’ with price predictions: Peter Brandt
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Source: cointelegraph.com
