{"id":39055,"date":"2025-12-10T19:28:16","date_gmt":"2025-12-10T19:28:16","guid":{"rendered":"https:\/\/financialrush.com\/?p=39055"},"modified":"2025-12-10T19:28:16","modified_gmt":"2025-12-10T19:28:16","slug":"bitcoin-price-reacts-as-us-federal-reserve-cuts-rates-by-25-bps","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=39055","title":{"rendered":"Bitcoin Price Reacts as US Federal Reserve Cuts Rates by 25 BPS"},"content":{"rendered":"

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Bitcoin’s price has declined by more than $2,000 in the last 24 hours. It dropped by some $500 in the past few minutes, and then recovered, right as the US Federal Reserve announced another rate cut – the third one for this year. It reduced the rates by 25 basis points (0.25%), while Powell also confirmed that they forecast one more cut in 2026.<\/p>\n

Apparently, the market was expecting a higher decrease of 50 basis points, which didn’t come, resulting in the current choppy price action. That said, the event was largely priced in, as Polymarket odds favoring a rate cut approached 99% hours before the press conference.<\/p>\n

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The decision comes at a time when the cryptocurrency market is experiencing heightened overall volatility. Just yesterday, CryptoPotato\u00a0<\/em>reported that Bitcoin skyrocketed by about $4,000 in minutes, peaking above $94,600 before retracing.<\/p>\n

The move was widely followed within the altcoin market. Notably, ETH increased by 9% over the following 24 hours, outperforming many large-cap cryptocurrencies.<\/p>\n

Recall that Coinbase Institutional predicted<\/a> a rally towards the end of the month. The primary reason is that its “systemic leverage ratio,” which tracks purely speculative positioning, has stabilized at around 4% to 5% of total market capitalization, down from 10% this summer.<\/p>\n

In other words, the firm believes that the “speculative excess has been flushed out,” meaning that the market structure, at least in their view, is healthier now.<\/p>\n

The post Bitcoin Price Reacts as US Federal Reserve Cuts Rates by 25 BPS<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n
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