Fed cuts rates by 25 basis points as crypto market extends losses
The post Fed cuts rates by 25 basis points as crypto market extends losses appeared on BitcoinEthereumNews.com.
Key Takeaways The Federal Reserve reduced its benchmark interest rate by 25 basis points amid mixed economic signals. The crypto market experienced declines with Bitcoin dropping 4% and Ethereum and Solana seeing larger losses. The Federal Reserve cut its benchmark interest rate by 25 basis points to a target range of 4.25%-4.5%, signaling a shift in monetary policy amid mixed economic signals. This brings the rate a full percentage point below its level in September, when officials began reducing rates. The Federal Reserve’s updated economic projections show GDP growth at 2.5% for 2024 and a gradual decline to 2.0% by 2027. The unemployment rate is expected to rise slightly to 4.3% in 2025, while inflation, as measured by the PCE index, is projected at 2.4% for 2024, remaining slightly above the Fed’s 2% target. The crypto market saw broad declines ahead of the Fed’s announcement as traders reduced risk exposure. The overall crypto market is down 5% in the past 24 hours, with Bitcoin dropping 4% from its yearly peak of over $108,000 achieved yesterday. Ethereum and Solana also saw declines, dropping 5% and 6% respectively from their weekly highs of $4,100 for Ethereum and just under $230 for Solana. President-elect Donald Trump’s upcoming policies on tariffs and deportations have added uncertainty, leading analysts to wait for these plans to materialize before predicting the Federal Reserve’s next steps for the coming year. However, many analysts anticipate fewer rate cuts in 2025, with projections currently suggesting only two rate reductions. Since Trump’s November 6 victory, the “Trump trade” has materialized in the crypto market, with Bitcoin surging more than 50% and some altcoins gaining over 200%. Many traders expect this momentum to strengthen further when Trump officially takes office. However, Arthur Hayes, former BitMEX CEO, has suggested that de-risking ahead of…
Filed under: News - @ December 18, 2024 7:28 pm