The Federal Reserve Open Market Committee (FOMC) has lowered the target Federal Funds rate by 25 basis points, now set between 3.75% and 4%. Analysts have suggested that this move was already anticipated by investors.

According to Matt Mena, a market analyst at 21Shares, the recent rate reductions were expected:

“November has historically been one of Bitcoin’s best-performing months, with positive returns in 8 of the past 12 years, averaging 46.02% returns. Overall, we remain moderately risk-on and see a credible path for Bitcoin to break its all-time high before year-end.”
(Translation: November is traditionally a strong month for Bitcoin, showing positive trends.)

Post-announcement, Bitcoin prices remained mostly stable, declining about 2.4% at the time of reporting, as comments from Jerome Powell, the Chair of the Federal Reserve, indicated that committee members are conflicted about possible cuts in December.

Michael Pearce, the deputy chief US economist at Oxford Economics, remarked:

“The unexpected hawkish dissent from a regional Fed president highlights that future moves are becoming more contentious.” (Translation: Disagreement within the Federal Reserve could indicate future challenges in decision-making.)

As participants analyze the potential for more rate reductions in 2025, predictions from several major banks suggest a downward trend may be forthcoming, potentially affecting asset prices.

In conclusion, the ongoing uncertainties, especially relating to trade dynamics between the US and China, could weigh heavily on crypto prices.