The Federal Reserve’s latest decision has sent ripples through the crypto market, with rate cut odds now at just 40%. As Bitcoin and Ethereum traders hold their breath, could this mark a turning point for the bull market?
How the Fed Rate Cut Decision Impacts Crypto Markets
The Federal Reserve’s cautious stance has created uncertainty across financial markets. Key points:
- Probability of September rate cut drops to 40%
- Fed maintains current 4.25%-4.50% rate range
- Crypto markets show mixed reactions with brief dip
Bitcoin and Ethereum: Bull Market Under Pressure?
While the overall crypto market cap holds steady at $3.94 trillion, analysts warn of potential slowdowns:
| Analyst | Prediction |
|---|---|
| Nick Ruck (LVRG Research) | Slower bull run pace expected |
| Henrik Andersson (Apollo Capital) | Market already priced in no cut |
What’s Next for Crypto Investors?
The Fed’s wait-and-see approach creates both challenges and opportunities:
- Monitor inflation data (currently at 2.7%)
- Watch for trade war developments
- Prepare for potential year-end rate cuts
FAQs
Why did the Fed reduce rate cut odds?
The Fed cited elevated economic outlook and tariff impacts on consumer prices as reasons for maintaining current rates.
How are Bitcoin and Ethereum reacting?
Initial dip followed by Asian market rebound, with prices remaining range-bound.
Could we still see rate cuts in 2025?
Yes, analysts still expect 1-2 cuts before year-end depending on economic data.
What was unusual about this Fed meeting?
It featured the first dissenting votes in 30 years, with two commissioners supporting a quarter-point cut.
