The cryptocurrency market maintained positive momentum following the U.S. Federal Reserve’s announcement of a 25 basis point interest rate cut on November 7. This marked the Fed’s first rate reduction since Donald Trump’s election win and follows a previous 50bps cut made in September.
Bitcoin remained steady, holding above the $76,000 mark, as the broader cryptocurrency market stayed in the green. Although Wall Street saw a surge post-announcement and the CBOE Volatility Index (VIX) dipped, cryptocurrency prices largely held their ground without significant movement after the Fed’s meeting.
Social media observers suggested that the impact of Federal Open Market Committee (FOMC) decisions on digital asset prices might diminish in the future, with some speculating that the market’s focus could shift away from traditional monetary policy shifts.
In its statement, the Federal Reserve notably removed language that previously indicated “greater confidence in inflation.” This move was interpreted by some as a sign of uncertainty related to upcoming elections and potential changes in monetary policy. However, Fed Chairman Jerome Powell clarified that the revisions were not meant as forward guidance and emphasized that the central bank would not alter its strategy based on short-term inflation data or electoral outcomes.
Despite his initial appointment by President Trump in 2017, Powell and Trump have often clashed over the Fed’s monetary policy, with Trump criticizing Powell for his cautious approach to interest rates. As Trump’s potential return to the White House looms, speculation about Powell’s future in the role has increased. In response to questions about the possibility of resignation, Powell firmly stated that he would not step down if asked by Trump.
The crypto market’s resilience following the Fed’s decision signals continued investor confidence, despite the shifting landscape in U.S. monetary policy.
Related topics:
Paxos Launches USDG Stablecoin in Line with Singapore’s Regulatory Standards
BlackRock’s IBIT Records $872 Million Inflow Amid Bitcoin ETF Surge
South Korea Sees Surge in Crypto Investors Amid Market Cap Growth
