#FedRateCut25bps FEDERAL RESERVE CUTS INTEREST RATE BY 25BPS — MARKET REACTS
The Federal Reserve has just made its first interest rate cut in nearly a year, lowering the benchmark rate to 4.00%–4.25%.
This marks a clear shift from the massive battle against inflation towards cushioning a slowing economy.
The move comes amid cooling job growth, softening consumer demand, and tightening credit conditions.
Although inflation remains above the Fed's target, policymakers seem to be prioritizing stability as downside risks to growth increase.
For crypto, this is a big signal.
The interest rate cut reduces the relative appeal of traditional yield-generating assets, allowing more room for capital to flow into Bitcoin, ETH, and other riskier assets.
The liquidity cycle has always been key for crypto, and historically, periods of easing have set the stage for strong rallies.
However, uncertainty remains.
Markets expect up to two more cuts this year, but the Fed remains cautious.
Stubborn inflation or unexpected global shocks could force them to slow down the pace.
This makes ETF flows, on-chain activity, and institutional positions key indicators for the coming months.
This cut may not be a moment of celebration—but it is a turning point. As liquidity conditions loosen, crypto could once again prove why it thrives when money moves faster.
The question now: is this the spark for the next move, or just the opening step in a longer chess game between growth and inflation?