The post Bitcoin Slips Ahead of Fed Rate Cut Announcement appeared on BitcoinEthereumNews.com.

Bitcoin dropped on Monday as global markets braced for a significant Federal Reserve policy change later this week. The largest cryptocurrency fell by as much as 2.06% early in the day but later stabilized at $58,733 at the time of writing. Other popular digital currencies like Ether and Dogecoin also declined in value. The Federal Reserve is widely expected to reduce interest rates this week for the first time in more than four years. Owing to more relaxed financial circumstances, such cuts are generally thought to be positive for riskier assets such as cryptocurrencies. However, they are wary of the extent of the rate cut expected on Wednesday, in addition to the updated projections for the economy by the Fed and Chair Jerome Powell. Sean McNulty, director of trading at Arbelos Markets, acknowledged that the FOMC, especially the guidance provided during the press conference and the new set of dot plots will be essential. McNulty said that the cut is less important than the signaling during the press conference and the release of the updated dot plot. He also stated that if the focus of the Fed is significantly bearish, it is quite possible to witness a sharp increase in the BTC/USD rate. Bitcoin Volatility Rises Amid Fed Rate Cut Speculations and Political News Bitcoin has been down after acknowledging a 10% enhancement over the prior week, the most significant weekly appreciation experienced in July. This recent rally was partly based on the expectation of sometimes a 50 basis point cut from the Fed. Officials are expected to reduce borrowing costs by at least 25 basis points in their upcoming meeting. The mainstream trend is geared toward speculations on a significant event in the Bitcoin options market around the upcoming Fed meeting, as revealed by Caroline Mauron, the co-founder of…

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Filed under: News - @ September 16, 2024 10:18 pm