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.
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