BTC experienced some enhanced volatility during the day, what's next?BTC experienced some enhanced volatility during the day, what's next?

US Fed Slashes Interest Rates by 25 BPS: How Will Bitcoin’s Price React?

In line with most expectations and its hint last month, the US Federal Reserve made the first interest rate cut for 2025, reducing it by 25 bps.

Most market commentators believed crypto and the rest of the financial markets had already priced in this cut, so it would be interesting to follow how BTC will react in the following hours and days.

Recall that the primary cryptocurrency exploded in late August during and after Jerome Powell’s speech from Jackson Hole, when the Fed chair hinted that the US central bank would finally cut the rates.

Experts anticipated a 25 bps rate reduction during the subsequent FOMC meeting, which took place yesterday and today.

BTC had climbed in the past several days in anticipation of the Fed’s announcement and even jumped to a four-week peak of $117,200 earlier today. However, it slumped in the following hours by almost two grand.

So far, its reaction to the actual interest rate reduction has been rather muted, as it continues to trade at around $116,000, where it was minutes before the announcement.

If that continues to be the case in the following few days, it would prove the theory that the markets had already priced in this rate cut.

BTCUSD. Source: TradingViewBTCUSD. Source: TradingView

The post US Fed Slashes Interest Rates by 25 BPS: How Will Bitcoin’s Price React? appeared first on CryptoPotato.

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