The post Bitcoin, XRP, Ethereum Dip Post Fed’s Rate Cut: What’s Next For Crypto? appeared com. On Wednesday, the Federal Reserve (Fed) announced a 25-basis-point rate cut from the previous rate of 4. 25%, aligning with market expectations. Despite this bullish development being highly anticipated by top experts as the best catalyst for the remainder of the year, Bitcoin (BTC), XRP, and Ethereum (ETH) led the market downturn following the announcement. Fed Chair Signals Uncertainty Over Further Rate Cuts The selloff intensified after Fed Chairman Jerome Powell indicated during his press conference that another interest-rate cut in December “is not a foregone conclusion.” This uncertainty has contributed to market volatility, as both cryptocurrencies and stocks have rallied this year in anticipation of lower interest rates. If the Fed does not implement further rate cuts in December, it could lead to a rebound in the dollar, which would be detrimental for Bitcoin bulls. Analyst Manuel Villegas from Julius Baer noted that options-derived implied movements for US equity indices suggest significant shifts around upcoming macroeconomic reports. He advised crypto investors to prepare for potential volatility. However, market expert Timothy Peterson provided further insights on social media site X (formerly Twitter), predicting that the Bitcoin price could rise up to 12% over the next week, meaning that the leading crypto could surge toward $123,000. Analyst Foresees Positive Momentum For Bitcoin In his analysis, Peterson highlighted Bitcoin’s performance surrounding Federal Reserve Federal Open Market Committee (FOMC) meetings and noted that since 2023, Bitcoin’s average movement after such meetings has been about 1. 5 times its prior week’s performance. With Bitcoin having gained 4% in the week leading up to the Fed’s decision, Peterson anticipates a subsequent increase of around 7%, with a potential range of 0-15%. The FOMC, which sets US interest rates and guides monetary policy, often sees markets trade cautiously before meetings, followed by reactions once the uncertainty is resolved,.
Tag: 25-basis-point
The post Gold hits new highs as safe-haven buying and Fed outlook fuels momentum appeared com. Gold (XAU/USD) is prolonging its uptrend for the fifth straight day and scaling new record highs through the Asian session on Thursday amid global anxieties. Investors remain worried about economic risks stemming from the US government shutdown, US-China trade war, and rising geopolitical tensions, which continue to drive flows towards the traditional safe-haven bullion. Apart from this, dovish Federal Reserve (Fed) expectations turn out to be another factor underpinning demand for the non-yielding yellow metal. In fact, traders now seem to have nearly fully priced in the possibility that the US central bank will lower borrowing costs two more times this year. The outlook drags the US Dollar (USD) to an over one-week low and backs the case for a further near-term appreciating move for the Gold. Meanwhile, the XAU/USD bulls seem unaffected by extremely overbought conditions on short-term charts. This further validates the near-term positive outlook for the commodity ahead of speeches from a slew of influential FOMC members. Daily Digest Market Movers: Gold remains well supported by global flight to safety, dovish Fed, weaker USD The partial federal government shutdown has extended into a third week, with no resolution in sight. The vote on the Republican-backed stopgap funding bill to reopen the government fell short of the votes needed for passage in the Senate for the ninth time on Wednesday. Investors seem worried that a prolonged US government closure would affect the economic performance. A Treasury official said that the shutdown may cost the US economy $15 billion a week in lost output, correcting an earlier statement from Treasury Secretary Scott Bessent. U. S.-China trade tensions escalated further after both sides imposed tit-for-tat port fees this week. Adding to this, US President Donald Trump said that he was considering terminating the cooking oil trade with China in retaliation to.