Fed's Rate Cut, Liquidity Move Impact Crypto Market
Update: 2025-12-11
Description
The Federal Reserve recently cut its benchmark interest rate by twenty-five basis points, a move widely expected. Alongside this, the Fed announced plans to purchase short-term Treasury bills to manage banking system liquidity. However, the cryptocurrency market saw a downturn, with Bitcoin and Ether falling by over two and four percent, respectively. This risk-off sentiment likely stems from growing concerns about divisions within the Fed regarding inflation control and employment goals. The Fed suggested only one more rate cut in two thousand twenty-six, creating uncertainty for investors. Greg Magadini of Amberdata noted the Fed appears divided, while Shiliang Tang of Monarq Asset Management observed Bitcoin is following the stock market lower. The Feds current program is a liquidity management tool, not quantitative easing.
The Daily News Now! — Every city. Every story. AI-powered.
Hosted on Acast. See acast.com/privacy for more information.
Comments
In Channel
Download from Google Play
Download from App Store
United States00:00
00:00
x
