The Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) approved a decision to cut the interest rate, but this decision was accompanied by mixed forward guidance, leading to an unclear impact on asset markets, especially Bitcoin (BTC).
1. 🛑 Announcement of the interest rate cut and division in the Federal Reserve
* Cut: The Federal Reserve Board approved a reduction of the main interest rate by 0.25%.
* Division: The vote on the decision was divided, indicating disagreements within the central bank regarding the future path of monetary policy.
* Background: This cut comes amid ongoing concerns about inflation and economic growth, in addition to market expectations that were awaiting further cuts.
2. 🚦 Mixed Forward Guidance
The focal point in the Federal Reserve's announcement was the lack of clarity regarding future interest rate cuts.
* Ambiguous forecasts: Federal Reserve Chairman Jerome Powell did not provide a clear and specific signal regarding the number or timing of additional interest rate cuts in the coming periods.
* Impact on markets: This ambiguity, referred to as "mixed guidance", has created a state of uncertainty in financial markets.
3. ₿ The impact of the decision on the cryptocurrency market (Bitcoin)
CoinTelegraph's report focuses specifically on the implications of the Federal Reserve's decision on Bitcoin, which often reacts to monetary policy decisions:
* Curbing the rise: Analysts believe that the lack of clarity regarding future interest rate cuts has put a brake on any potential rise in Bitcoin price (Bitcoin price rally).
* "Fragile range": Data from Glassnode data analysis company indicates that Bitcoin remains within a "fragile range".
* Price cap (below $100,000): These economic concerns, along with the fragile range, may keep the price of Bitcoin below $100,000 in the near term, according to some market analyses and options (Bitcoin options).
Summary
In summary, the Federal Reserve's decision to cut the interest rate, along with its unclear guidance about the future, has led to mixed feelings in the market. While the rate cut may inject some vitality into stocks, the ambiguity surrounding Jerome Powell's next steps contributes to keeping Bitcoin within a weak price range, preventing it from achieving significant potential gains.
