This week, cryptocurrency traders have found the interest rate decision following Trump’s election to be relatively insignificant. However, the importance of announcements accompanying the rate decision during the new all-time high attempts is significant. Therefore, it would not be surprising to see increased volatility in the coming hours.
Fed Interest Rate Decision
Before the announcement, markets were pricing in a 99% chance of a 25 basis point cut. The Fed must bring interest rates to a neutral level while remaining vigilant about employment issues. Despite starting with a decisive figure of 50 basis points, Powell stated, “Don’t interpret this as a relaxation pace.”
The interest rate decision has now been revealed. Prior to the announcement, Bitcoin (BTC) 
$101,435 surged to $76,667 and hovered around $76,600 just minutes before the decision. The rates dropped by 25 basis points as expected, with BTC now lingering at $76,300. Key details of the decision include:
- Fed: The committee believes the risks to employment and inflation targets are roughly balanced.
- Fed: Labor market conditions have generally softened; the unemployment rate has risen but remains low.
- Fed: The decision was made unanimously in favor of policy. We will continue reducing bond assets at the previously announced pace. Economic activity has continued to expand steadily.
