- The Federal Reserve announced that a 25-basis-point interest rate reduction is targeted to a range starting from 4.50%- 4.75%.
- Before this, the meeting was held in September, in which the Federal Reserve System started to cut rates by 50 basis points.
- Solana gained 9%, ADA gained 17% and Cronos showed a significant increase of 25%. Other tokens including Jupiter, Pyth, Neiro, and GOAT had gains between 10% and 13%.
On November 7, a post-meeting press conference was held, during which the Chairman of the Federal Reserve System, Jerome Powell, made some significant comments.
In the meeting, Powell did not directly present where rates might go from now on. However, the market is speculating that there may be a revelation in the December meeting or after that. The chairman highlighted the point that the economy is strong, which can lead officials to cut down the interest rates.
He further went on to add that the law is confining regardless of the recent lowered rate, and the lawmakers are trying to drag the interest rate back to the normal rates. When the question arises about the time of adjusting the speed of the rate cuts, Powell has commented that if the labor market slows down and goes near stability then officials can move forward swiftly and slow down the rates.
Powell feeling good about the economy
At the same time, he also said that the executives have still not discussed the issue. Overall, talking about the economy, Powell is feeling good about that. During this, the stocks haven’t stopped rising, and the S&P 500 is on track for another record close. The largest cryptocurrency has also recorded its new all-time high.
On the same day, the Federal Reserve announced that a 25-basis-point interest rate reduction is targeted to a range starting from 4.50%- 4.75%. This step is regarded as positive for uncertain asset types of cryptocurrencies. Bitcoin is still on surge and has recorded its continued fourth day of gains.
The judgment of the central bank has now speculated markets before time. Before this, the meeting was held in September, in which the Federal Reserve System started to cut rates by 50 basis points.
The significant gains
Bitcoin along with other cryptocurrencies has gained profits from low interest rates. As a consequence, the effect on the markets is not dubious, as the largest cryptocurrency as well as others have witnessed significant gains.
The rise of Bitcoin is about 3.5% and standing at $76,568 at the press time. At the same time, Solana gained 9%, ADA gained 17% and Cronos showed a significant increase of 25%. Other tokens including Jupiter, Pyth, Neiro, and GOAT had gains between 10% and 13%.
FedWatch, a tool from the CME Group has declared that a meeting by the Fed which is to be held on December 17 and 18 has traders pricing in about a 75% probability of having another rate slash.
