Fed Slashes Rates ✂️ – Crypto Markets Brace for Volatility
The US Federal Reserve slashed rates by 25 basis points, which led to anticipation that there will be additional cuts and that cryptocurrencies may get a boost in liquidity.
The Federal Reserve of the United States has lowered its main interest rate by 25 basis points, creating a new range of 4% to 4.25%. Eleven of the twelve members of the Federal Open Market Committee (FOMC) voted in favor of the decision, which is based on indicators of slower job creation, rising unemployment, and inflation that won't go away.
This is the fourth decrease by the Fed since late 2024, and two more are likely before the end of 2025. President Donald Trump has frequently pushed the central bank to take more action, even proposing that Jerome Powell be removed as chairman. Trump suggested earlier this week that the Fed should cut "bigger than Powell had in mind."
Lower interest rates usually make conventional investments less appealing, which drives investors toward other assets like cryptocurrency. Analysts think that the additional cash might make trade in Bitcoin (BTC), Ethereum (ETH), and other tokens go up. However, how dovish or cautious the Fed's forecast looks in its dot plot might affect how the market reacts.
The Senate also approved Stephen Miran, an economist who is supportive to cryptocurrencies, to the Federal Reserve Board. He had wanted a bigger decrease of 50 basis points. The Fed is also planning a symposium next month to talk about stablecoin models and tokenization in banking.
Entry Zone: $1.330 - $1.350 (Look for rejection or bearish confirmation)
Target 1: $1.270 (First support level)
Target 2: $1.220 (Stronger support)
Stop Loss: $1.390 (Above resistance)
Trade Details
✅ Wait for a bearish rejection at $1.330 - $1.350 before entering. ✅ A rejection at resistance could push price toward $1.270 and $1.220. ✅ Monitor 4H & 1H charts for confirmation with volume analysis. ✅ If price breaks above $1.390, exit to minimize risk.
Risk Management
🔹 Maintain a 2:1 risk-to-reward ratio. 🔹 Adjust stop loss if price consolidates near resistance.
Momentum Indicators
📉 RSI near overbought could signal exhaustion. 📉 Decreasing volume at resistance strengthens bearish bias.
Pro Tip
🚨 Keep an eye on BTC movements, as sudden volatility can impact $WIF.