The recent decision by the US Federal Reserve to cut interest rates for the third time has caused significant volatility in the cryptocurrency market.
Bitcoin, along with other cryptocurrencies like Ethereum and Dogecoin, experienced a dip in price following the announcement. This market reaction reflects the uncertainty introduced by the Fed's cautious stance on future monetary policy. Analysts believe that the rate cut acted as a catalyst for shedding speculative excess in the market.
Despite the recent drop, Bitcoin has seen a 50% increase since the US elections, driven by President-elect Donald Trump's commitment to deregulating the cryptocurrency sector.
However, the Fed's updated outlook for 2025, which projects fewer rate cuts than previously anticipated, has raised concerns among investors. Inflation data and the lack of consensus among Fed officials have further contributed to the uncertainty in the market.
Bitcoin's price currently stands at $101,180, reflecting a 2.2% decline in the past 24 hours. The interplay between the Fed's monetary policy, inflation concerns, and market sentiment will continue to shape the trajectory of Bitcoin and the broader cryptocurrency market in the coming weeks.