Fed Cuts Rate by 25 Basis Points; Bitcoin, Ethereum Drop

The Federal Reserve announced a 25-basis-point rate cut from 4.25%, matching market expectations. Despite this, Bitcoin, XRP, and Ethereum led a market downturn.

Uncertainty Over Future Rate Cuts

  • Fed Chair Jerome Powell indicated that another rate cut in December is uncertain, increasing market volatility.
  • This uncertainty could strengthen the dollar, negatively impacting Bitcoin prospects.

Analyst Manuel Villegas noted significant potential shifts for US equity indices around macroeconomic reports, advising crypto investors to brace for volatility.

Potential Positive Momentum for Bitcoin

  • Timothy Peterson predicts a potential 12% rise in Bitcoin prices, possibly reaching $123,000.
  • Peterson observed Bitcoin's performance typically improves post-FOMC meetings, anticipating a 7% increase following the recent Fed decision.
  • The FOMC often causes cautious trading before meetings, with reactions after uncertainty resolves.

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