The post Fed Cuts Interest Rate Again – Will Crypto Rally Or Stall? appeared on BitcoinEthereumNews.com. The Federal Reserve lowered its benchmark interest rate by 25 basis points to 3.75–4.00% on Wednesday, marking its second rate cut this year. The central bank said economic growth remains moderate while job gains have slowed and unemployment has edged up. Inflation, however, remains “somewhat elevated,” keeping the Fed cautious about further policy easing. Sponsored Sponsored Fed Balances Inflation and Labor Market Risks The decision also confirmed that the Fed will end quantitative tightening on December 1, effectively pausing its balance sheet reduction earlier than expected. The statement highlighted growing downside risks to employment, a shift from prior meetings that focused mainly on inflation.  The Fed said it will assess future policy “based on incoming data” and the “balance of risks” to its dual mandate. Chair Jerome Powell and most committee members backed the move, while two dissented. Stephen Miran supported a deeper 50 bps cut, citing weaker job data.  Market Expectations For December Rate Cuts. Source: CME FedWatch Economic Context Available indicators show that growth continues at a moderate pace, but key labor measures are softening. The unemployment rate remains low, though the Fed acknowledged it has risen slightly since the summer. Sponsored Sponsored Inflation has picked up since early 2025, reinforcing concerns that prices could stay above the 2% target longer than expected. Futures markets now price a 70% chance of another 25 bps cut in December.  However, Powell is expected to stress a data-driven approach at the press conference. Outlook for Crypto Markets The policy shift may bolster risk appetite in the short term. Bitcoin and major altcoins often benefit when liquidity expands and bond yields fall. Major KOLs such as MicroStrategy’s Michael Saylor and Robert Kiosaki earlier predicted Bitcoin price to go beyond $150,000 by the end of 2025.  However, persistent inflation could limit broader enthusiasm.… The post Fed Cuts Interest Rate Again – Will Crypto Rally Or Stall? appeared on BitcoinEthereumNews.com. The Federal Reserve lowered its benchmark interest rate by 25 basis points to 3.75–4.00% on Wednesday, marking its second rate cut this year. The central bank said economic growth remains moderate while job gains have slowed and unemployment has edged up. Inflation, however, remains “somewhat elevated,” keeping the Fed cautious about further policy easing. Sponsored Sponsored Fed Balances Inflation and Labor Market Risks The decision also confirmed that the Fed will end quantitative tightening on December 1, effectively pausing its balance sheet reduction earlier than expected. The statement highlighted growing downside risks to employment, a shift from prior meetings that focused mainly on inflation.  The Fed said it will assess future policy “based on incoming data” and the “balance of risks” to its dual mandate. Chair Jerome Powell and most committee members backed the move, while two dissented. Stephen Miran supported a deeper 50 bps cut, citing weaker job data.  Market Expectations For December Rate Cuts. Source: CME FedWatch Economic Context Available indicators show that growth continues at a moderate pace, but key labor measures are softening. The unemployment rate remains low, though the Fed acknowledged it has risen slightly since the summer. Sponsored Sponsored Inflation has picked up since early 2025, reinforcing concerns that prices could stay above the 2% target longer than expected. Futures markets now price a 70% chance of another 25 bps cut in December.  However, Powell is expected to stress a data-driven approach at the press conference. Outlook for Crypto Markets The policy shift may bolster risk appetite in the short term. Bitcoin and major altcoins often benefit when liquidity expands and bond yields fall. Major KOLs such as MicroStrategy’s Michael Saylor and Robert Kiosaki earlier predicted Bitcoin price to go beyond $150,000 by the end of 2025.  However, persistent inflation could limit broader enthusiasm.…

Fed Cuts Interest Rate Again – Will Crypto Rally Or Stall?

The Federal Reserve lowered its benchmark interest rate by 25 basis points to 3.75–4.00% on Wednesday, marking its second rate cut this year.

The central bank said economic growth remains moderate while job gains have slowed and unemployment has edged up. Inflation, however, remains “somewhat elevated,” keeping the Fed cautious about further policy easing.

Sponsored

Sponsored

Fed Balances Inflation and Labor Market Risks

The decision also confirmed that the Fed will end quantitative tightening on December 1, effectively pausing its balance sheet reduction earlier than expected.

The statement highlighted growing downside risks to employment, a shift from prior meetings that focused mainly on inflation. 

The Fed said it will assess future policy “based on incoming data” and the “balance of risks” to its dual mandate.

Chair Jerome Powell and most committee members backed the move, while two dissented. Stephen Miran supported a deeper 50 bps cut, citing weaker job data. 

Market Expectations For December Rate Cuts. Source: CME FedWatch

Economic Context

Available indicators show that growth continues at a moderate pace, but key labor measures are softening. The unemployment rate remains low, though the Fed acknowledged it has risen slightly since the summer.

Sponsored

Sponsored

Inflation has picked up since early 2025, reinforcing concerns that prices could stay above the 2% target longer than expected.

Futures markets now price a 70% chance of another 25 bps cut in December

However, Powell is expected to stress a data-driven approach at the press conference.

Outlook for Crypto Markets

The policy shift may bolster risk appetite in the short term. Bitcoin and major altcoins often benefit when liquidity expands and bond yields fall.

Major KOLs such as MicroStrategy’s Michael Saylor and Robert Kiosaki earlier predicted Bitcoin price to go beyond $150,000 by the end of 2025. 

However, persistent inflation could limit broader enthusiasm. If inflation expectations rise again, risk assets—including crypto—may face renewed pressure from stronger dollar flows.

Crypto Market Remains Unresponsive To the Expected Rate Cuts. Source: CoinGecko

Analysts say the balance between easing and inflation will define the next phase of the crypto market. 

Sustained liquidity support could lift Bitcoin above key resistance levels, while a hawkish tone in December may reverse those gains.

Source: https://beincrypto.com/fed-interest-rate-cut-fomc-crypto-market-outlook/

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Crypto Market Faces Turbulence as Fed Rate Cut Sparks Sell-off

Crypto Market Faces Turbulence as Fed Rate Cut Sparks Sell-off

The post Crypto Market Faces Turbulence as Fed Rate Cut Sparks Sell-off appeared on BitcoinEthereumNews.com. Alvin Lang Oct 31, 2025 19:03 The cryptocurrency market experiences a significant downturn following a Federal Reserve rate cut, with Bitcoin and Ethereum prices plunging and market liquidations rising. The cryptocurrency market is experiencing a significant downturn, with Bitcoin (BTC) and Ethereum (ETH) prices plummeting, according to CoinMarketCap. This market turbulence follows a recent interest rate cut by the Federal Reserve, which has led to increased market volatility and substantial liquidations. Impact of Federal Reserve’s Rate Cut The Federal Reserve’s decision to cut interest rates by 0.25% to a range of 3.75% to 4.0% has triggered a bearish sentiment in the crypto market. The move, seen as hawkish by market participants, has resulted in a sharp decline in cryptocurrency prices. Bitcoin’s price fell to $108,000, while Ethereum slipped below $4,000. The overall market capitalization of cryptocurrencies saw a 4% decrease, dropping to $3.64 trillion. Surge in Market Liquidations The volatility has led to a significant increase in market liquidations, which jumped by 130% to over $1.3 billion. This surge in liquidations reflects the heightened uncertainty and fear among investors, as indicated by the Fear and Greed Index moving into the fear zone with a reading of 34. Market Reaction and Future Outlook Investors are closely monitoring the situation as the Federal Reserve’s actions continue to influence market dynamics. The unexpected rate cut has led to a reassessment of risk, prompting widespread sell-offs across the crypto market. Analysts suggest that market participants should brace for continued volatility as the full impact of the Federal Reserve’s policy changes unfolds. For more insights on the current market situation, visit the CoinMarketCap. Image source: Shutterstock Source: https://blockchain.news/news/crypto-market-turbulence-fed-rate-cut-sell-off
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BitcoinEthereumNews2025/11/01 17:03