Fed Confirms 25 Bps Rate Cut As Many Crypto Analysts Predicted, More Cuts to Come

Fed confirms 25 bps rate cut as many crypto analysts predicted

More rate cuts expected as QT announced to end by December Q1

With expectation for QE to follow by the end of the year, bullish sentiments rise.

After high anticipation over the aftermath of the FOMC meeting, the verdict is finally in and the crypto market has a bearish reaction. In detail, the Fed confirms 25 bps rate cut as many crypto analysts predicted. At the moment, most financial experts claim that more rate cuts are on the horizon and one analyst went on to share a full FOMC meeting prediction, which seems to have played out perfectly.

Fed Confirms 25 bps Rate Cut as Many Crypto Analysts Predicted

Over the last few days sentiments for a bullish reaction for the crypto market following rate cut announcements were strong. Most predicted a 25 bps rate cut as Fed Chair Jerome Powell had previously mentioned there would be many small rate cuts following the September 25 bps rate cut. This is exactly what played out at the recent FOMC meeting, and the reaction from the crypto market was quite bearish

According to a prediction by the reputed Doctor Profit, this bearish outcome was expected. This is because the analyst reveals that the rate cut was already priced in, which meant that there would be no bullish upturn for crypto prices following the latest FOMC meeting conclusion and announcement. Thus, with many prominent traders already expecting a berish outcome, the true hero of the FOMC meeting announcement was that of QT ending

As we can see from the post above, the reputed and popular crypto trader, expert, analyst, and enthusiast, Lark Davis, practically confirms what the other analyst predicted based on what the post mentions. In detail, Lark Davis states that the Fed just cut rates by 25 bps, which he says was no surprise. He also adds that a 50 bps rate cut was pushed for, showing Trump’s hope for more rate cuts

However, Lark Davis then confirms that the real gem from the FOMC meeting this time was that of the announcement confirming the ending of QT. In particular, QT is expected to end on December 1, leading to speculation that QE will begin by the end of the year. While Doctor Profit says there is no guarantee that QT ending will commence QE beginning immediately, Lrk Davis remains hopeful

QT vs QE, New Triggers for Crypto Pump Arrive

Lark Davis continues to say that if and when QE picks up, then fresh liquidity will flow into the market, and confirms that doving momentum is building, which is an extremely bullish backdrop for risk assets like Bitcoin and altcoins. Thus, many believe the price of gold has hit its peak and that capital will slowly begin to flow from non-risk assets like gold and silver to risk assets like BTC and altcoins.