Market Overview
Bitcoin saw a slight decline in early Asian trading on Thursday, even as regional stocks received a boost from the Federal Reserve’s latest rate cut and a positive outlook on the U.S. economy.
Federal Reserve Action
The Federal Reserve announced its third consecutive quarter‑point rate cut, with Chair Jerome Powell indicating that inflation from tariffs should fade as the U.S. economy strengthens. This move was described as a step toward policy normalization, with officials aiming to support jobs without causing price pressures to flare again.
Market Reaction
- Bitcoin was down about 2.3%
- Ether dropped 2.4%
- XRP fell 3.9%
- The total crypto market cap was down 2.4%
Fed Projections & Market Outlook
The Fed’s projections showed only one more cut expected in 2026, fewer than investors had hoped for. This has led to a reassessment of how far the easing cycle can go, with futures now implying about a 78% chance the Fed will leave rates unchanged at its next meeting.
Asian Stock Performance
Asian stocks generally rose, but there was mixed sentiment in Greater China. The Shanghai benchmark slipped slightly, while Hong Kong’s Hang Seng index advanced. Tech stocks in the U.S. showed caution after Oracle’s revenue fell short of expectations.
Analyst Insight
Nic Puckrin, an investment analyst, suggested that the Fed’s decision wasn’t as hawkish as expected, but the limited number of cuts projected for next year could dampen market enthusiasm. He also noted that the announcement is unlikely to spark a Santa rally for Bitcoin, with no obvious catalysts on the horizon.
Conclusion
While the Fed’s rate cut provided a boost to stocks, Bitcoin and other cryptocurrencies saw a slight decline. The mixed reactions in different markets highlight the complex interplay between monetary policy and investor sentiment.
