🟧 The U.S. Federal Reserve has decided to cut the federal funds rate by 50 basis points to a range of 4.75% – 5%. This marks the first rate cut in four years, concluding the aggressive rate-hike cycle. Fed officials project further cuts to 4.4% by the end of the year, reflecting expectations of two more rate reductions in upcoming meetings.
🟧 Following the announcement, Bitcoin’s price briefly surged by 1.2%, but then retraced, while the stock market showed gains: Nasdaq +0.8%, S&P 500 +0.6%. Analysts, including Arthur Hayes from BitMEX, suggest that the rate cut could impact investments, particularly with changes in the interest rate differential between the dollar and the yen. Market volatility is expected due to uncertainty, which may lead to significant fluctuations in both cryptocurrency and stock prices.