Interest Rate Cuts Fail to Lift Crypto as 2025 Inflation Worries Grow
The Federal Reserve reduced interest rates by 25 basis points on December 18, setting a ceiling of 4.50%, as expected. While a rate cut is typically bullish for crypto, the market remains unimpressed.
Over the past 24 hours, cryptocurrencies have declined by 4%, reflecting concerns over the Fed’s projection of higher inflation in 2025 and plans for only two rate cuts next year.
What Do the Interest Rate Cuts Mean for Crypto
The Fed’s updated projections create a mixed outlook for digital assets. While lower rates signal a softer monetary policy, expectations of higher inflation and a slower pace of rate cuts dampen optimism.
Investors were hoping for a faster rate reduction cycle in 2025, which would…
