Crypto market remains bullish following Fed rate cut

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.

Mentioned in this article

Author

Gino Matos

Reporter at CryptoSlate

Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).

Editor

Assad Jafri

Editor & Reporter at CryptoSlate

AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.