We lower the rates – Bitcoin and Altcoins responded

In contrast to broader expectations that cryptocurrencies would gather in the case of a rate reduction by the Federal Reserve, the market has witnessed almost no response since the Federal Open Market Committee (FOMC) meeting ended.

Analysts at the market research agency Santiment Al predict That a speed is larger than 25 basic points (BPS) could cause a large outbreak. On the other hand, it was expected that a non-ratified outcome would lead to a chaotic withdrawal. Neither of the scenarios took place, but analysts believe that it is still too early to draw conclusions.

Fed finally reduced rates

On Wednesday, the FED reduced interest rates with 25 BPS, which reduced the benchmark range to 4.00%–4.25%. This development started the American relaxation cycle again after a long break.

FED chairman Jerome Powell clarified that the rate reduction was not occurring, not because the risk of inflation has decreased, but because economic growth and the creation of jobs seem softer.

Powell explained that there was no strong enough environment for a 50bps -Nee. However, predictions on the market suggest that there could be extra relaxation this year. The results of the seventh and eighth FOMC meetings, planned for October and December, can include a maximum of 50 BPS cuts.

Will BTC gather in the coming months?

In the case of extra price reductions in the coming months, BTC could experience a considerable price promotion. While the market is waiting, analysts say that traders currently have a moderate risk level when buying and adding bitcoins to their portfolios. This is because BTC probably has more room to grow.

In the last 30 days, average active BTC portfolios have generated an average profit of 3.5% on their investments. In the past year, that figure has increased by 16.1%. With a possible straight path to $ 120,000 in the coming weeks, driven by a favorable macro -economic environment, analysts expect these portfolios to gain more substantial profit.

In the meantime, Santiment analysts noticed a significant increase in social dominance during the FOMC meetings on Tuesday and Wednesday. This peak exceeded the social dominance of other discussions about the FOMC or Powell. Such an elevation has not been registered since April, when President Donald Trump’s rates had a chokehold in the financial markets.

“What does this enormous social peak mean? Well, traders were special in this at the moment, given the (and turned out) to be the first reduction in almost two years. And unlike the dozens or so past FOMC meetings, this one who was finally expected to lead to a change,” mentioned santiment, “mentioned santiment,” Santiment, “. Santiment, “mentioned santiment,” mentioned santiment, “mentioned santiment,” mentioned santiment, “mentioned santiment,” mentioned santiment, “mentioned santiment,” mentioned santiment, “mentioned santiment,” stated santiment, santiment, santiment, santiment, “mentioned santiment,” ” “mentioned santiment,” mentioned santiment, “mentioned santiment,” mentioned santiment.