Key Takeaways:
- Crypto Sell-Off: Bitcoin fell 4.6% to $101,300, and Ether dropped 5.96% to $3,600 after the Fed’s 25 bps rate cut.
- Hawkish Fed Signals: The Fed plans only two rate cuts in 2025, surprising markets with its cautious outlook.
- Inflation Forecast Revised: The Fed raised its 2025 inflation estimate from 2.1% to 2.5%, citing potential economic shifts under new policies.
The cryptocurrency market experienced a sharp decline following the Federal Reserve’s announcement of a 25 basis point rate cut and a surprisingly cautious 2025 outlook.
Bitcoin fell 4.6% to $100,300, while Ether dropped 5.96% to $3,600.
JUST IN: 🇺🇸 Federal Reserve cuts interest rates by 25 bps to 4.5%
— Simply Bitcoin (@SimplyBitcoinTV) December 18, 2024
Incoming Bitcoin price correction. 🚀
Although the rate cut was expected, the Fed signaled plans for only two additional cuts in 2025, unsettling investors.
Fed Chair Jerome Powell revealed a revised inflation forecast for 2025, increasing it from 2.1% to 2.5%, reflecting potential economic shifts under the Trump administration’s anticipated policies, including tariffs, immigration changes, and deficit-expanding measures.
Powell emphasized the Fed’s strategy to balance growth and stability amid these economic adjustments.
The hawkish inflation outlook and limited rate cuts contributed to market unease, prompting the sell-off in cryptocurrencies and a cautious sentiment across financial markets.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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