Fed Rate Cuts, Crypto Market Drop, Liquidity Boost
Update: 2025-12-25
Description
Feds Interest Rate Cuts: A Mixed Bag for CryptoThe Federal Reserves interest rate cuts in 2025, despite unemployment rise and cooling inflation, failed to boost crypto markets. Bitcoin and Ether plummeted, losing over $1.45 trillion from their October peak. Analysts warn of further declines if the Fed pauses cuts amid sticky inflation, potentially dropping Bitcoin to $70,000 and Ether to $2,400. Liquidity, not rate moves, drives crypto prices. The Feds stealth quantitative easing, including $40 billion short-term Treasury purchases, could prop up crypto, potentially pushing Bitcoin to $92,000-$98,000 and Ether to $3,600, fueled by ETF inflows and institutional buy-ins.
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