BCGAME - Free 5BTC Daily Bonus!The U.S. Federal Reserve (Fed) announced on November 7 its decision to cut interest rates by 25 basis points. The move follows a 50 basis point cut that was made in September. The price of Bitcoin reacted immediately after the Fed's announcement, showing a significant appreciation.
Like many market experts predicted, the Federal Open Market Committee (FOMC) cut the federal funds benchmark interest rate to a range between 4,50% and 4,75%.
“In support of its goals, the Committee decided to lower the target range for the federal funds rate by a quarter of a percentage point to 1% to 4%,” the central bank said in a statement. “Recent indicators suggest that economic activity has continued to expand at a solid pace. Inflation has progressed toward the Committee’s 4,50% objective but remains somewhat elevated.”
The statement also addressed the possibility of further rate cuts by the entity, highlighting that: “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of the information received for the economic outlook.”
“…the Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflationary pressures and inflation expectations, and financial and international developments,” complemented the FOMC.
In a continuing move, financial markets have been betting on just two cuts in the base rate for 2025, forecasting a reduction to between 3,75% and 4%. This less aggressive outlook for cuts is an adjustment in light of the robust economic data observed since the last meeting in September, which have gradually reset expectations for a less steep path of interest rate adjustments.
At the time of publication, the price of Bitcoin was quoted at US$76.349,54, up 1.6% in the last 24 hours.
It is worth noting that, in a historical setting For the cryptocurrency market, Bitcoin (BTC) recently broke through the $76.000 price level, reaching a new all-time high of $76.677,38 today. This event occurred amid heightened optimism fueled by Donald Trump’s victory as president of the United States, which many analysts believe could be beneficial for digital assets. Comparatively, the current price is 0,36% lower than the asset’s all-time high.
