US Federal Reserve Lowers Rates by 25 Basis Points Affecting Bitcoin Price
The US Federal Reserve's decision to reduce interest rates by 25 basis points has stirred reactions in the cryptocurrency market, particularly impacting Bitcoin.
The US Federal Reserve has implemented a quarter-point interest rate cut today, aimed at stabilizing a wobbly labor market.
This marks the second consecutive rate cut amid an ongoing government shutdown. As of now, Bitcoin’s trading price stands at approximately $111,400, reflecting a decline of over 3% in the past 24 hours.
Bitcoin Price
Source: TradingView
Additionally, liquidations in the derivatives market are relatively high, estimated at around $560 million today, while the overall cryptocurrency market cap is approximately $3.86 trillion, according to CoinGecko data.
The anticipated rate cut had been largely priced in, as prediction markets, such as Polymarket, suggested the likelihood of this outcome for several weeks.
Fed Chair Powell also indicated that the conclusion of asset reduction purchases would occur on December 1st, a process known as quantitative tightening.
However, a lack of economic data remains a concern, as the shutdown has effectively paused the collection of crucial reports on inflation and employment.
