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Breaking: Bitcoin (BTC) Slumps as Markets Anticipate No Further Rate Cuts from the Federal Reserve
December 19, 2024 | By Alex Dovbnya
In a sudden turn of events, Bitcoin’s price has taken a sharp nosedive today amid concerns that the Federal Reserve will not be implementing any further rate cuts in the near future. The news comes as markets await the outcome of the Fed’s latest policy meeting, scheduled for December 20.
According to recent reports, several prominent banks and financial institutions have revised their forecasts regarding potential rate cuts. BNP Paribas, for instance, now predicts that the Federal Reserve will not consider another rate cut until mid-2026, a significant shift from previous predictions.
As a result of this unexpected turn of events, Bitcoin’s price has taken a hit, plummeting by as much as 3.5% in recent trading sessions. The decline is largely attributed to the increased uncertainty surrounding interest rates and their potential impact on global economic growth.
Market analysts have been quick to react to these developments, warning that any expectations of further rate cuts may have been overly optimistic. This shift could potentially have far-reaching consequences for risk-on assets such as Bitcoin, whose price has historically been closely tied to interest rates.
“The market is likely to respond negatively to this development,” says Alex Dovbnya, a renowned cryptocurrency expert and trader. “The Fed’s sudden shift in stance is set to create significant headwinds for Bitcoin’s price trajectory, at least in the short term.”
As the market waits with bated breath for further guidance from Federal Reserve Chair Jerome Powell during his upcoming press conference, it remains to be seen how Bitcoin will react to these changing circumstances.
Source: u.today
