The interest rate cut announced by the FED yesterday did not have the expected impact on the cryptocurrency market.
While the price of BNB reached an all-time high of $1,000, the prices of major cryptocurrencies like Bitcoin and Ethereum remained largely flat. Analysts say this suggests investors lack confidence that the Fed is truly shifting to a looser monetary policy path.
Wave Digital Assets CEO David Siemer stated that he expects the effects of the interest rate cut to be seen over time, saying, “Bitcoin could rise to approximately $130,000 by the end of the year, while Ethereum could rise to $6,000.”
However, experts say a single interest rate cut wasn’t enough to generate market excitement. “A rate cut is a tailwind, but it doesn’t create a paradigm shift in the market,” said Ira Auerbach, president of Tandem, a subsidiary of Offchain Labs, and a former Nasdaq executive. “The direction is in crypto’s favor, but a single move doesn’t determine the trend.”
Stocktwits market strategist Tom Bruni, however, stated that investors had already priced in the news, interpreting the current stagnation as a sell-off. Galaxy manager Chris Rhine similarly argued that the interest rate cut was already priced in, and the market was focused on future directions.
*This is not investment advice.