Crypto Stays Calm ⚖️ – Bitcoin Remains Stable After Fed’s 25bps Rate Cut
The Federal Reserve’s 25-basis-point interest rate cut met market expectations, marking its first reduction of 2025. Analysts predict two more quarter-point cuts later this year amid concerns over the labor market and slowing economic growth.
Despite the announcement, Bitcoin (BTC), Ethereum (ETH), and major altcoins showed minimal movement. Bitcoin traded around $116,000, slightly below its pre-FOMC high of $117,000, while ETH, XRP, BNB, and SOL saw gains of just over 2%.
The Fed noted that job growth has slowed, unemployment remains low, and inflation persists. Only Governor Stephen Miran voted for a larger 50-bps cut, while the majority expect further quarter-point reductions.
Lower rates generally make government bonds less attractive, encouraging investors to seek higher yields in equities and crypto. The muted market reaction suggests that investors had largely priced in the rate cut.
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