Yesterday, the Fed announced that it had cut interest rates by 25 basis points. Despite the markets widely expecting this cut, the price of Bitcoin reacted negatively.
The reason for this decline is actually not at all related to the cut itself, but to more complex considerations that particularly concern what the Fed Chairman, Jerome Powell, said during the subsequent press conference.
The decline of Bitcoin due to the Fed’s announcement
When the Fed announced the rate cut of 25 basis points, the price of Bitcoin was limited to moving from about $104,000 to about $103,000.
On the other hand, it was exactly what the markets were expecting, and what they had already widely priced in.
However, in that decline there was already something that suggested that the situation was less rosy than imagined.
In fact, half an hour later, with the start of Powell’s press conference, the decline accelerated.
During the press conference, which lasted less than an hour, the
We współpracy z: https://en.cryptonomist.ch/2024/12/19/the-fed-brings-bitcoin-below-100000/
