The US Federal Reserve’s decision to cut interest rates by 25 basis points created a bullish wave in the crypto market. In addition, Fed Chair Jerome Powell’s cautious messages focused on economic data paved the way for crypto assets, especially Bitcoin, to gain value. These developments increased investors’ expectations for a more flexible Fed policy in the fight against inflation.
Bitcoin and the Fed’s Monetary Policy
After Powell’s statements , the Fed lowered its policy rate to a range of 4.5% to 4.75%. This step was a development that the markets had been waiting for a long time. However, the interest rate cut created a positive wind, especially for Bitcoin. The price also reached a new peak of $ 76,800. However, after this rise, a slight correction came and the BTC price fell to the $ 75,800 level.

Analysts say Powell’s messages that he will continue to gradually cut interest rates are supporting the crypto market. In particular, the optimistic atmosphere in the markets after the September rate cut was effective in the upward trend of crypto assets. Analysts such as Crypto Rover predict that these rate cuts could push Bitcoin (BTC) to the $100,000 level.
Analyst Views and Market Reactions
Many analysts have noted the changes in language used in the Fed’s latest rate cut announcement. Dan Siluk of Janus Henderson Investors noted that the Fed has used less definitive language regarding its inflation target. According to Siluk, this change indicates that the Fed is giving itself the flexibility to react more quickly to economic data. This could create cautious optimism in Bitcoin and cryptocurrency markets.

Great Hill Capital President Thomas Hayes stated that the Fed is trying to provide economic stability with interest rate cuts. Hayes explained that the Fed is trying to stay away from political pressures as an independent institution. He also stated that these steps give confidence to the markets . He also noted that such policies aim to provide a balanced appearance in the labor market.
Bitcoin, Cryptocurrencies and Future Prospects
The Fed’s rate cuts continue to be important, especially for long-term investment strategies . Ben Vaske of Orion Portfolio Solutions predicts that the Fed could pursue a more cautious rate cut policy. Vaske says this approach would allow the US economy to maintain its strong stance.

On the other hand, analyst Samuel Thomas expects another 25 basis point rate cut in December. Thomas also believes that the Fed may announce a larger rate cut plan for 2025. In this context, as we reported at Kriptokoin.com , it is known that the Fed’s economic projections play a decisive role in market movements, Bitcoin and cryptocurrency performances.
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