Only good for Bitcoin. Since September 2024, the United States Federal Reserve (the Fed) decided to start lowering key rates. A further decline was highly anticipated by the financial markets this December 18, and it finally took place: interest rates were once again lowered by 25 basis points. Something to rejoice Bitcoin (BTC) and les cryptos?
- The United States Federal Reserve has decided to reduce its key rates by 25 basis points on December 18, 2024.
- This cut in interest rates from the Fed should allow cryptocurrencies to continue their bull market, and Bitcoin to mark new highs.
The Fed’s key rates have melted at the end of 2024, with another 25 points less
This Wednesday, December 18, 2024, the Federal Open Market Committee (FOMC) met to decide on the policy to be followed regarding the key rates of the Federal Reserve American. And this policy will remain accommodating once again.
In fact, the Fed bankers decided to lower for 3e consecutive times these interest rates. After 50 points in September last, then again by 25 points in Novemberthe FOMC decided to further reduce 25 basis points key rates.
While these rates remained blocked for more than a year (from summer 2023 to September 2024) between 5.25 and 5.5%, after these 3 successive declines, they are now only in a range between 4.25 and 4.5%. That’s a drop of 1% in just 3 months. This reduction in key rates should, however, slow down in 2025and experience pauses at upcoming FOMC meetings.
This reduction in interest rates by the Fed, and more generally its transition towards a accommodative monetary policyis excellent news for asset markets says “ risk-on “, like the actions and the cryptocurrencies. After marking a new ATH (all-time high) at over $108,000, Bitcoin will he go again break records ? We should be fixed very soon, after this new rate cut from the Fed.
Business
Related News :