"The drop came shortly after the central bank reduced its benchmark interest rate by 0.25 percentage points to a target range of 3.75%-4%. The cut - the Fed's second of 2025 after a move in September - ended a long stretch of rate holds. The policy shift is intended to lower borrowing costs and support economic activity. But Powell's comments that further cuts are not guaranteed this year sparked selling across risk assets."
"During the press conference, as Jerome Powell said that December's rate cuts aren't guaranteed, Bitcoin's price immediately reacted - plunging to $109,000 in a sharp red candle before quickly recovering. The broader crypto market reacted similarly. Powell said that inflation excluding the impact of tariffs is "not so far" from the central bank's 2% target, but emphasized that policymakers have "not made a decision about December.""
Bitcoin's price fell to $109,000 Wednesday afternoon after the Federal Reserve reduced its benchmark interest rate by 0.25 percentage points to a target range of 3.75%-4%, then leveled near $111,000. The cut was the Fed's second of 2025 and aimed to lower borrowing costs and support economic activity. Powell said further cuts in December were not guaranteed and that inflation excluding tariffs is "not so far" from the 2% target, with officials holding strongly differing views. Markets trimmed odds of a December cut to about 71%, two-year Treasury yield rose nine basis points, and the broader crypto market sold off.
Read at Bitcoin Magazine
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