With the Fed making a widely anticipated decision, experts are turning their attention to the tone.
summary
- As the market predicted, the Federal Reserve reduced by 25 basis points
- Fed tone could boost Bitcoin and Altcoins
- Still, the altcoins have not yet come out of the forest. Because there is no definitive decision regarding further mitigation
The Federal Reserve implemented its longstanding 25 base point rate reduction, the first reduction in 2025. All prices for the September 17th cut were focused on the Fed’s tone and future signals.
In particular, Federal Reserve Chairman Jerome Powell highlighted the risks to employment and growth, saying the doors are open for more cuts. This shows the Dubu shift, along with FOMC opponents who called for a 50 Vegis Point Cut. Crypto.News spoke with several experts in the crypto space prior to the decision and asked how this would affect the crypto market.
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A 25 base point cut was expected, but the stakes are higher than before, according to Shawn Young, chief analyst at Cryptocurrency Exchange MEXC. As inflation still rises, the market will closely monitor the direction the Fed is taking.
In a bullish scenario, the flashy Fed’s outlook for even more interest rate cuts could drive the flow to BTC and other blue chip coins, with BTC prices heading into the $120,000-125,000 range.
Farzam Ehsani, CEO of Crypto Exchange Valr, also suggested that Bitcoin could continue to face macro pressure. With Bitcoin, what matters is the expansion of institutional liquidity, he added.
“The relative performance of Bitcoin against the Gold and S&P 500 highlights the changing market dynamics today. Investors are very selective about where they currently deploy capital.”
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Fed decision could trigger an Altcoin Rotation
According to Arthur Azizov, founder of B2 Ventures, the response to the Fed could boost Bitcoin and Altcoins or lead to a “selling news” scenario. The latter alternative is particularly likely when the market views the Fed as not adequately determined.
“The altcoins are even more sensitive. They currently appear to be over $230, but face intense resistance near $240-250, while XRP defends the $2.90-$3.00 zone. The issue is liquidity.
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