Crypto market slight downfall after FOMC meeting

 FOMC interest rate impact on crypto market:

The Federal Open Market Committee (FOMC) has chosen to keep interest rates unchanged, disappointing investors who had hoped for a reduction. Many believed that lower rates could boost financial markets, including cryptocurrencies. Although the crypto market saw slight losses after the announcement, there were no major disruptions since the decision was widely expected.

The Federal Reserve remains focused on keeping inflation at 2% and maintaining economic stability. Despite speculation that a rate cut could stimulate the economy, the Fed decided to stay cautious due to ongoing uncertainties. This decision is in line with previous statements from Fed Chair Jerome Powell, who had already signaled that immediate cuts were unlikely.

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Crypto investors had been optimistic that lower interest rates would bring fresh capital into the market, which has been struggling with price swings and economic pressures. Without a rate cut, traders will need to find other factors to drive growth. The market now looks to future policy changes or new economic developments that could improve investor confidence.

Although the FOMC ruled out immediate reductions, it suggested that two rate cuts might still happen later in 2025. If these adjustments take place, they could create a more favorable environment for high-risk assets like cryptocurrencies. However, the Fed emphasized that any rate cuts will depend on inflation trends, economic stability, and market conditions.

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Beyond interest rates, the Fed also announced a slowdown in quantitative tightening (QT), which affects the supply of Treasury securities. This move is seen as a cautious step to provide more market liquidity, giving some investors hope. However, for now, crypto traders remain uncertain, waiting for clearer signs of economic recovery or regulatory changes that could reignite bullish momentum in the market.