Yesterday, BTC fluctuated around $91,000 and $92,000 on the eve of the Federal Reserve's interest rate decision. After learning about the 25 basis points rate cut, it stayed above $92,000. Since this rate cut had already been priced in by the market, and the Fed's outlook and plans for 2026 did not change significantly, but mentioned that the pace of rate cuts may slow down. Currently, the Fed board estimates that there will be one more rate cut next year, but the market interprets this as not happening in January, suggesting that rate cuts may be paused. Therefore, the market did not react strongly.
This time the Federal Reserve's interest rate meeting is the most divided since Powell took office, with 6 board members believing that interest rates should remain unchanged. Powell also admitted during the Q&A session that most board members believe inflation levels are still relatively high, and although the job market has softened, it is stronger than expected. Therefore, there is some reservation regarding the pace of interest rate cuts for next year. He emphasized that more economic data is needed for clearer interest rate decisions next year. Overall, Powell's speech was relatively conservative, so the market remained stable after the press conference.
The next thing to pay attention to is the Bank of Japan's interest rate decision next week. The market already expects the Bank of Japan to announce the start of interest rate hikes, possibly as soon as next week. Although the market has fully anticipated this, the long-standing 10-year interest rate differential trading has been impacted, which is something the market has not experienced yet. It is also unknown how much liquidity will be withdrawn as a result, so next week's Bank of Japan interest rate decision may be the key to a market shift.
"MICA Daily｜The interest rate cut is in line with market expectations, BTC holds steady at 92,000 USD" This article was first published on (Blockcast).
