The Federal Reserve Open Market Committee (FOMC) announced a 25 basis point interest rate cut on Wednesday, bringing the federal funds rate up to 3.75%-4%.
Wednesday Rate Cut is “absolutely priced” by investors, who widely expect the decisionaccording to Matt Mena, a market analyst at Investment Company 21shares. Mena also predicts:
“November has historically been one of Bitcoin’s best performing months, with positive returns in 8 of the past 12 years, averaging a 46.02% return. Overall, we remain moderate risk and see a credible path for Bitcoin to break all-time highs before the end of the year.”
Asset prices remained flat or fell modestly on Wednesday following the FOMC decision, with bitcoin prices (BTC) Falling about 2.4% At the time of writing, following Federal Reserve Chair Jerome Powell’s Comments The sign that FOMC members are divided on a December rate cut.
“The unexpected hawkish dissent from a regional president highlights that future moves are becoming more encouraging,” Michael Pearce, Deputy Chief Us Economist at Advisory Company Oxford Economics, said in comments shared with Cointelegraph.
The growing Dissent among the FOMC Signals a deeply divided feed, which could put a damper on crypto prices by starving the market of liquidity that could flow into digital and other risk assets.
Related: US Bitcoin and Ether ETFS rebound as Powell rate cuts cut rate
Market participants are weighing the possibility of further rate cuts in 2025
The Federal Reserve the 2025 rate-cutting cycle began in September with an initial 25 basis-point cut, which helped BTC prices to an all-time high above $125,000.
More than 56% of market participants expect the Fed to lower interest rates to a target window of 3.5%-3.75% in December, according to Data from the Chicago Mercantile Exchange (CME).
In September, several commercial banking giants, including Bank of America, Citigroup and Investment Bank Goldman Sachs Forecast of at least two rate cuts in 2025.
Reductions usually boost asset prices. However, the widely expected reduction may be overshadowed by emerging uncertainty sparked by Trade tensions between China and the UScreating investor uncertainty.
Magazine: Crypto traders are fooling themselves ‘with price predictions: Peter Brandt
