Bitcoin Volatile After Fed’s 25 Basis-Point Rate Cut

BTC spiked above $94,000 before retreating as Fed Chair Jerome Powell balanced caution on inflation with concerns over a weakening labor market.

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Summary

Bitcoin (BTC) briefly surged above $94,000 before retreating to around $93,500 following the U.S. Federal Reserve’s 25 basis-point rate cut on Wednesday. Fed Chair Jerome Powell, in a post-meeting press conference, expressed caution about inflation while noting potential weakness in the labor market. Ethereum (ETH) rose 2.4% to trade above $3,400. The New York Fed will purchase up to $40 billion in short-term Treasuries over the next month, a move intended to ease financial conditions without initiating full-scale quantitative easing. Analysts emphasized that the rate cut does not signal an aggressive easing cycle, with future decisions dependent on incoming inflation and labor data. Two Fed members dissented from the cut, one favored a larger 50 basis-point cut. Crypto analyst forecasts suggest stronger spot ETF inflows could push BTC above the $100,000 level if momentum overcomes resistance at $94,500. GoPlus reported $4.7 million revenue in 2025, driven mainly by its app and SafeToken Protocol, with its $GPS token recording $5B spot and $10B derivatives trading volume since launch.

Terms & Concepts
  • FOMC (Federal Open Market Committee): The policy-making body of the U.S. Federal Reserve that sets interest rates and oversees open market operations.
  • Basis Point: A unit equal to one hundredth of a percentage point, used to describe interest rate changes.
  • Spot ETF: An exchange-traded fund that directly holds the underlying asset, such as Bitcoin, rather than futures contracts.