Crypto Markets Move as Fed Announces 25-BPS Rate Cut

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Bitcoin’s price has declined by more than $2,000 in the last 24 hours. It dropped by some $500 in the past few minutes, and then recovered, right as the US Federal Reserve announced another rate cut – the third one for this year. It reduced the rates by 25 basis points (0.25%), while Powell also confirmed that they forecast one more cut in 2026.

Apparently, the market was expecting a higher decrease of 50 basis points, which didn’t come, resulting in the current choppy price action. That said, the event was largely priced in, as Polymarket odds favoring a rate cut approached 99% hours before the press conference.

The decision comes at a time when the cryptocurrency market is experiencing heightened overall volatility.

The move was widely followed within the altcoin market. Notably, ETH increased by 9% over the following 24 hours, outperforming many large-cap cryptocurrencies.


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