The Federal Reserve has reduced interest rates this month, but the reaction of the cryptomarkt is much more muted than many expected. Investors hoped at an immediate meeting, especially in Altcoins, but Bitcoin continues to move sideways.
Bitcoin fell to around $ 112,761, a decrease of more than 3% in the past week, while Ethereum fell to $ 4,086 and lost more than 11% in the same period. XRP fell to $ 2.89, moved more than 6%and BNB withdrew to $ 1.007. Solana saw the sharpest withdrawal between the upper assets and fell more than 15% to $ 208.
Why markets often struggle after cuts
Analyst Scott Melker explained Those speed cutting cycles tend to follow a well -known pattern. First the yield curve reverses, then it normalizes and the Fed finally turns to lowering the rates. In many cases, markets perform poorly immediately after these cuts before they stabilize and enter a new cycle months later.
This time Fed chairman Jerome Powell presented the decision as a defensive step. He mentioned weakness on the labor market and rising inflation while still choosing to cut. That type of message signals that underlie economic problems, which causes caution instead of excitement. Historically, most interest rates happen because there is something wrong in the economy.
Why Crypto does not respond yet
The shares have risen in the days after the announcement, and gold is approaching $ 3,800 per ounce, which shows that safe port activa attract attention. Bitcoin, however, is consolidating and the expected Altcoin over voltage still has to take off completely.
That said, recent token launches have shown a strong momentum. Solana and Ethereum placed large movements earlier this year, while new projects such as Aster and Hemi have achieved enormous profit. For many analysts this is a sign of a healthier market structure compared to earlier cycles.
Market sentiment remains split
The mood of investors remains divided. Some traders are sturdy bullish, convinced that ETFs, new regulations and rising institutional interest rates are long -term in the back. Others continue to bearish and warn that weak economic data and internship floor risk can drag all risk activa lower.
Despite this gap, the consensus is that the supply and demand dynamics should help to maintain a strong basis. With ETFs approved, treasury companies that buy and discussions about strategic reserves are going on, there are more buyers than sellers in the current environment.