The Federal Reserve has cut rates for the second time this year — but over on the markets, there’s little cause for celebration.
With little economic data to rely on, Jerome Powell has warned that the central bank’s policymakers are struggling to agree on what should happen next.
Because of this, another reduction in December is “not a foregone conclusion,” despite the Fed indicating this was the plan earlier this year.
Bitcoin was down 4% over the past 24 hours at the time of writing, and just about holding above $110,000. Ether’s fallen by 5% too, dipping below $3,900.
Copper’s head of research Fadi Aboualfa told Cryptonews that crypto traders had prepared for today’s Fed meeting ahead of time.
He said the “real signal” now lies in inflows to BTC ETFs, and whether institutional buying holds steady.
“Bitcoin has moved beyond the retail sentiment cycle — volatility has compressed because the holder base is more patient, and Wall Street advisers are the ones allocating serious capital now. The more Bitcoin behaves like a mature asset, the stronger the long-term compounding story becomes: that stability is precisely what enables supply squeezes to build.”
Nonetheless, Aboualfa did warn that Bitcoin has the potential to fall further in the short-term. He believes “a quick move” to $108,000 is possible, but noted that “dips keep getting absorbed by account building multi-month positions.”
A close above $111,000 keeps the structural pattern intact that we’ve seen before major bull run-ups. Bears still need to prove they can do more than shake weak hands.”
