Crypto market remains bullish following Fed rate cut

The 25bps cut was likely priced in, prompting no immediate reaction by risk assets markets.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Following a meeting on Nov. 7, the Fed’s Federal Open Market Committee (FOMC) cut the US interest rate by another 25 basis points (bps), lowering it to 4.5% from 4.75%. The crypto and equities markets remained unfazed, as investors likely already priced the cut.

According to CryptoSlate data, Bitcoin (BTC) has been up 1% over the past 24 hours, and its current price is $76,644.57. Meanwhile, Ethereum (ETH) registered a more significant upward movement of 7.4%, reaching $2,888.21.

Solana (SOL) is inching close to $200 after growing 4.6% daily. The crypto market cap is up 1.3% in the same period, nearing $2.7 trillion.

Tokens related to real-world assets (RWA) protocols grew 11% in the past 24 hours and are leading the gains. According to data aggregator Artemis, this is nearly five times larger than the average market performance of 2.3%.

Moreover, the US equities market remained relatively steady following the FOMC announcement, with the S&P 500 rising 0.9% today and the Nasdaq index increasing by 1.62%. Notably, the indexes registered gains before the rate decision.

Uncertainty remains

The Fed Chairman, Jerome Powell, stated that the economic activity continues to expand steadily, though the outlook remains uncertain. He added that the labor market has eased somewhat, with a slight increase in the unemployment rate, which remains low overall.

Powell added that inflation is progressing toward the Fed’s 2% target, but the number is still high. 

The Fed chair said that future rate decisions will depend on incoming data, economic outlook, and the balance of risks to employment and inflation. Nevertheless, “one or two” months of displaying unfavorable data will not affect the Fed’s rate decisions.

Addressing the government change, the Fed Chair said the election result will not affect the rate policy in the near term.

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