As a seasoned financial analyst with over two decades of experience under my belt, I’ve seen my fair share of market fluctuations and central bank decisions. The recent 25 basis points interest rate cut by the Federal Reserve, while expected, is always a pivotal moment that can shape the trajectory of various asset classes.
According to their plan, the U.S. Federal Reserve will lower the key interest rate by a quarter of a percent, as predicted by financial experts.
On the Bitstamp exchange right now, the cost of a single Bitcoin stands at approximately $103,729. After the recent announcement was made, its value has dropped by over 1%.
According to U.Today’s report, the Federal Reserve lowered interest rates in September. Since then, the value of Bitcoin has surged by over 70%.
The rate has now been lowered to the 4.25%-4.50% range following the most recent cut.
In contrast, certain financial experts anticipate that the Federal Reserve may take on a more aggressive stance (hawkish) in the year 2025, owing to worries about inflation persisting longer than anticipated.
As a researcher, I’m sharing some insights regarding projections made by BNP Paribas. They foresee the Federal Reserve refraining from another interest rate cut until the middle of 2026. Given this prediction, it seems plausible that risk-on assets like Bitcoin might not fare favorably under such circumstances.
At his forthcoming news conference, Jerome Powell, Federal Reserve Chairman, might offer valuable insights to the market on whether the Fed is considering reducing its accommodative policy.
The Federal Reserve’s official announcement indicates a degree of uncertainty about whether they will further reduce interest rates.
Fed swaps are now pricing in less easing in 2024 following the Fed’s revised dot plot.
The central point or average value has risen by 0.50% to reach 3.875%. This increase might not be well received in the markets, according to Jeroen Blokland, founder and manager of the Blokland Smart Multi-Asset Fund, as expressed on social media.
It’s generally anticipated that the central bank will maintain current interest rates in January. As for 2025, US interest rate forecasts suggest only two possible reductions.
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2024-12-18 22:19