Fed Rate Cut Fails to Boost Cryptocurrency Markets
- The U.S. Federal Reserve reduced the interest rate by 0.25%, setting it between a range of 3.75% and 4%.
- Bitcoin was trading at approximately $111,700, marking a decline of about 3% in the last day.
- Ethereum saw a price change to around $4,000, reflecting a slight gain of about 3.2% since Tuesday.
- The CME FedWatch Tool indicated over a 99% probability for the rate cut, aligning with market expectations.
- Gerry O’Shea from Hashdex noted that other factors like government policies might influence digital asset prices more significantly than the rate cut.
Despite the Federal Reserve’s decision to lower interest rates by another quarter-point, cryptocurrency markets showed little reaction as Bitcoin and Ethereum experienced minor fluctuations in their prices.
This move by the Fed was largely anticipated by traders, as reflected in tools like CME FedWatch, yet it did not significantly impact digital asset values immediately following the announcement.
