Cryptocurrency Market Continues to Rise After Fed Rate Cut by 25 Basis Points
Date: 2024-11-08 Author: Henry Casey Categories: CRYPTO PAYMENTS
On November 7, the Federal Reserve announced a 0.25% cut in its key rate during its Federal Open Market Committee meeting, continuing the easing policy that began in September, when the rate was cut by 0.5%.
The price of Bitcoin remained above $76,000, and the total capitalization of the cryptocurrency market remained confidently in the green zone. US stock markets also responded with growth, while the CBOE Volatility Index declined. Despite the general optimism, cryptocurrency prices remained almost at the same level compared to the indicators before the meeting.
Amid this situation, the topic of the influence of the Fed’s decisions on the value of digital assets was actively discussed on social networks. Some analysts suggest that further decisions by the committee may have a smaller effect on the crypto market than previously expected.
It is worth noting that representatives of the Federal Reserve removed from their statements the wording indicating "increased confidence in inflation." Experts attribute these changes to the influence of the elections and potential adjustments in the Fed's policy. In response to questions about these changes, Fed Chairman Jerome Powell noted that they are not a forecast guideline and are intended only to clarify the wording.
Jerome Powell, Chairman of the Federal Reserve
Powell also emphasized that the Federal Reserve's leadership will not change strategy based on short-term inflation data or election results. This statement came amid rumors of possible conflicts between Powell and newly elected President Donald Trump, who is known for his criticism of the Fed's conservative policies. Recall that despite Powell's appointment in 2017, Trump has repeatedly expressed dissatisfaction with his approach, believing that the high rate is holding back the country's economic growth.
In addition, rumors concern Powell's possible resignation after Trump takes office in January. When asked by journalists about his future, Powell said that he does not intend to leave his post, even if he receives a corresponding request from the president.
