Breaking: Federal Reserve Announces 25 Bps Fed Rate Cut

Highlights,The US Federal Reserve has announced a 25 basis point Fed rate cut, the third rate cut this year. This development has further sparked a bullish sentiment in the crypto community, considering the impact it could have on crypto prices.,In a press release, the Federal Reserve announced that it had decided to cut interest rates by 25 basis points following the FOMC meeting. This Fed rate cut is in line with market expectations as experts like Bank of America’s Mark Cabana had predicted that the committee would reach this decision.,This interest rate cut is the third this year, following earlier Fed rate cuts in September and November. Like the previous one, this rate cut provides a bullish outlook for the Bitcoin price and the broader crypto market.,Moreover, it comes just weeks before Donald Trump’s inauguration, another event that could spark further rallies in the crypto market, especially if the president-elect implements the Strategic Bitcoin Reserve.,However, it is worth mentioning that following this 25 bps rate, the LSEG estimates that there is a 90% chance that the Federal Reserve will hold rates at its January meeting. Regarding its next course of action, the Fed simply stated that it will monitor the implications of incoming information for the economic outlook and adjust its stance where necessary.,Crypto analyst Ali Martinez raised the possibility of altcoins benefitting more from these rate cuts than the Bitcoin price. In an X post, Martinez noted that after the last three FOMC meetings, Bitcoin dominance dropped, and altcoins rebounded.,

,As such, there is the possibility that this could happen again. As CoinGape reported, the altcoin season index has dropped, which indicates that altcoin season has passed. However, things could again flip in favor of these altcoins.,In an X post, crypto analyst Satoshi Stacker said that the Bitcoin dominance is now testing a key resistance. If the resistance holds, the analyst predicts that altcoins should continue to perform but if the BTC dominance breaks above this resistance, then Bitcoin’s outperformance will return for a while.,

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