The cryptomarkt fell slightly after the report of the FED rate on Wednesday 17 September. As expected, the Federal Reserve started its first reduction of 2025 by reducing its benchmark interest with 25 bps to 4% and 4.25%. Moreover, the FED meant a reduction in the speed of 50 BPS before the end of this year, supported by the majority of supervisory directors.
However, the crypto-market capitalization fell by 1% to float around $ 4.1 trillion during the Mid-North American session. Bitcoin (BTC) price fell by 1% to reach a range of approximately $ 114,940 before he returned something to trade around $ 115,698 at the time of this report.
Top reasons why crypto fell after reducing the Fed Rate
Sales-it-new story
The cryptomarkt would certainly experience a sales-de-news story after the reduction of the FED rate, especially after most traders had correctly predicted the outcome. Traders who had bought the rumors today accelerated the profit about the news.
Fed continues with quantitative tightening (QT)
While the FED started its first interest rate of 2025, the commissioners voted to continue with quantitative tightening (QT). The Fed has reduced its balance by selling government bonds.
“The committee will continue to reduce its possession of treasury subjects and debts of debts and agency by mortgageback -backed,” the Fed noted.
As a result, the Fed liquidity will continue to get from the financial system, so that the crypto -bullish prospects are weighed.
Technical tail wind
Bitcoin and Ethereum had led the wider crypto market in a bullish prospect in recent weeks, but the momentum has gradually blurred. Solana Price, for example, has difficulty gathering than $ 250, XRP price has not succeeded in gathering above $ 3.2 and Ethereum Price has experienced a considerable delivery wall of approximately $ 4,777.