The US Federal Reserve announced a 25 basis point (bps) rate cut following its November FOMC meeting. This development is undoubtedly significant, considering the impact it could have on the Bitcoin price and broader crypto market.
US Federal Reserve Announces 25 Bps Rate Cut
In a press release, the US Fed announced its decision to cut interest rates by 25 bps, just about two months after it cut them by 50 bps at its September FOMC meeting. This move from the US Central Bank provides a bullish outlook for the Bitcoin price, which is already hitting new highs.
Interstingly, similar to the US Federal Reserve’s decision, the Bank of England (BOE) announced a 25 bps rate cut earlier in the day. This decision from both central banks will likely open up a liquidity cycle, causing more money to flow into risk assets like Bitcoin and other cryptocurrencies.
The crypto community will look forward to US Federal Reserve Chair Jerome Powell’s speech to see how dovish the Fed is. Positive remarks from him would suggest that the Fed could still cut interest rates at its December FOMC meeting.
In the press release, the US Federal Reserve stated that economic activity has continued to expand at a solid pace. They remarked that since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. They added that inflation has progressed toward their 2% goal.
The Bitcoin Price Rally To $100,000 Is On
With the US Federal Reserve cutting interest rates, the Bitcoin price rally to $100,000 looks more than likely to happen soon enough. Analyst Justin Bennett recently mentioned in an X post that if risk assets can survive the FOMC today, it could spark the BTC rally to $100,000,, which the market has been anticipating.
The crypto market is currently reacting positively to the US Federal Reserve’s rate cut, which indicates that the next leg of the bull run is indeed already happening. Following Donald Trump’s victory, CNBC reported that some analysts predicted that the Bitcoin price could hit $100,000 even before the president-elect’s inauguration.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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