Fed Rate Cut Sparks Crypto Volatility as Markets Digest Mixed Signals
The Federal Reserve's 25-basis-point rate cut to 3.75% has sent shockwaves through cryptocurrency markets, with traders interpreting the move as a potential pause in monetary easing. Dissenting votes from three FOMC officials and ambiguous forward guidance have amplified uncertainty, triggering sharp price swings across major digital assets.
Jerome Powell's remarks that the Fed is "well-positioned to wait" suggest a cautious approach, while the central bank's planned $40 billion Treasury bill purchases aim to stabilize liquidity. This delicate balance between restraint and intervention has left crypto investors parsing every nuance of Fed policy for clues about 2026 rate projections.