In minutes Jerome Powell, president of the FED, will speak.
There could be a “selling of the news”, since the market anticipated this cut.
The United States Federal Reserve (FED) announced this Wednesday, October 29, a 25 basis point cut in interest rates, setting the new range at 4% annually. This decision, which was already anticipated by part of the market, seeks to make monetary policy more flexible.
Following the announcement, the price of bitcoin (BTC) has not registered a clear trend. While a decline in interest rates is typically a bullish factor for digital assets by increasing liquidity in the financial system, the initial reaction has been muted. This could be because the decision, as CriptoNoticias explained this morning, was already discounted by investors.
Joel Vainstein, CEO of the Orionx exchange, points out in communication with this medium that “this second consecutive cut calibrates the risk-return balance internationally. The additional injection of liquidity can boost the price of crypto assets and open new investment opportunities, especially given the regulatory and technological advances in the sector.”
The focus is now on the press conference that the president of the entity, Jerome Powell, will offer in the next few minutes. His statements will be key so that markets can interpret the future monetary policy roadmap and how it could impact assets like bitcoin.