Bitcoin reacted mutedly to the Fed's rate cut.
On October 29, the US Federal Reserve System (FRS) for the second time in a row lowered the key rate by 25 bp to 3.75-4%.
“Available indicators indicate moderate growth in economic activity. Employment growth has slowed this year, and the unemployment rate has risen slightly but remained low until August; more recent data confirm this trend. Inflation has increased since the beginning of the year and remains somewhat elevated,” the press release states.
The meeting's results met investor expectations, and the market reaction was modest. The Bitcoin chart showed volatility and high trading volumes, but no significant price changes.
At the time of writing, the leading cryptocurrency is trading at around $111,500, down 3% in 24 hours.
Ethereum price dropped below $4000.
Other assets in the top 10 by market capitalization also fell into the red. TRX fell 11% in 24 hours, and DOGE fell 3.7%.
Fear and Greed Index remains neutral at 51.
The Federal Reserve's plans
In the long term, the Fed aims for an annual inflation rate of 2%.
The Committee also decided to complete the reduction in the total volume of securities (QT) from December 1.
“The Federal Reserve will be prepared to adjust monetary policy as needed if risks arise that could impede the achievement of its objectives. These assessments take into account a wide range of information, including labor market data, inflation pressures and expectations, as well as financial and international developments,” the regulator's representatives clarified.
In the course of press conferences Federal Reserve Chairman Jerome Powell noted that the US economy is currently being seriously impacted by the government shutdown. It has also delayed the release of several important indicators.
President Donald Trump's trade tariffs are also fueling inflation, Powell added. Prices for the affected goods are rising.
In addition, according to the chairman, the risks of a weakening labor market are increasing.
Let us recall that analyst Axel Adler Jr. allowed Bitcoin's new rally after the Fed meeting.
Source: cryptonews.net
