u.today
The U.S. Federal Reserve has decided to cut the benchmark interest rate by 25 basis points, which is in line with analysts' expectations.
The price of Bitcoin is currently trading at 104,374 on the Bitstamp exchange following the announcement.
As reported by U.Today, the Fed stasrted cutting interest rates in September. The price of Bitcoin has rallied by more than 70% since then.
The rate has now been lowered to the 4.25%-4.50% range following the most recent cut.
However, some analysts now expect the Fed to adopt a more hawkish tone in 2025 due to concerns about stickier-than-expected inflation.
BNP Paribas, for instance, predicted that the Fed will not implement another rate cut until mid-2026. This likely will not bode well for risk-on assets of the likes of Bitcoin.
During his upcoming press conference, Fed Chair Jerome Powell is likely to provide markets with crucial hints about whether or not the Fed is inclined to scale back easing.