After the Fed’s rate cut and Powell’s 2025 inflation outlook, Bitcoin’s price dropped to $100.3k.
Bitcoin and the broader crypto market sold off after the Fed announced it was cutting its benchmark policy rate by 25 basis points and hinted that a smaller-than-expected rate cut could take place in 2025.
Bitcoin (BTC) price fell 4.6% to $101,300, while Ether (ETH) fell 5.96% to $3,600, following Fed Chairman Jerome Powell's post-rate cut press release.
Although market participants had expected a 0.25% rate cut, which would tick the box for most traders with high rate expectations, Powell's indication that only two more rate cuts would occur in 2025 raised eyebrows. Adding to what some traders see as hawkish, the Fed committee raised its 2025 inflation target to 2.5 percent from 2.1 percent.
BREAKING: S&P 500 falls sharply after Fed cuts rates by 25 basis points, but raises inflation forecast
In the year By 2025, the Fed has lowered its outlook for a 3 to 2 rate cut and raised inflation from 2.1% to 2.5%.
Inflation is back. pic.twitter.com/kKtEHD0IF0
— Kobeissi Letter (@KobeissiLetter) December 18, 2024
A slight shift in perspective is taking into account policy changes coming under the incoming Trump administration, which is expected to impose tariffs on imported goods, deport millions of undocumented workers en masse and widen the deficit.
In the press release, he emphasized that the Fed's policy reset is a sign that the central bank is ready to adjust its policy to the needs of the US economy.
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Regarding the short-term predictions for the price of Bitcoin, BTC analyst Skew said that BTC's decline “cleared the position” “both ways”, as long stop and “profit closing short”.
The buyer is now fully loaded.
Not seeing the same passive buying on other exchanges
Binance position remains very difficult for someone
Bid fee will be around $100k-$98k https://t.co/MzhetiJtbC
— Skew Δ (@52kskew) December 18, 2024
Bitcoin price fell in a bid in the range of $100,000 to $98,000, and the analyst said that retrieving the zone of $100,000 to $101,400 with a spot bid is necessary before the daily candle closes.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
