Fed’s 50bps Interest Rate Cut, Everything to Know

Russell Here with an Important Message For Our Digital Asset Mavericks, After months of anticipation, the Federal Reserve has announced a 50 basis points rate cut. ​ This decision has sent ripples through financial markets, with Bitcoin's pr​ice reacting immediately to the news by jumping above $60,700 before settling just over $61,000 shortly afterward. ​ Here's what this could mean for crypto….. ​ What Happened? Federal Reserve Chair Jerome Powell announced the decision to reduce the interest rate by 50 basis points in light of the cooling inflation, which has dropped to about 2.2% from its previous 7% peak earlier in the year. The move comes amid concerns of an overheated labor market and is intended to support the economy as it transitions to a more neutral policy stance. Many analysts had been divided on whether the cut would amount to 25bps or 50bps, with some warning that a 50bps reduction could signal that the economy is weaker than suggested. The Fed opted for the more significant cut, signaling a readiness to tackle economic uncertainties head-on. A Positive Boost for Bitcoin? Bitcoin's immediate response to the rate cut was a notable pri​ce surge. , Bitcoin climbed to over $60,700 within minutes and even reached above $61,100 when Powell started his press conference. However, it later settled slightly below $61,000. The surge suggests that the crypto market views the rate cut favorably, as it signals increased USD liquidity and lower borrowing co​sts, which typically encourage inve​stment in risk-on assets like cryptocurrencies. Historically, lower interest ra​tes have been correlated with capital inflows into the crypto market, driving up pri​ces for Bitcoin and other digital assets. What to Watch Market Volatility: While the immediate reaction to the rate cut has been positive for Bitcoin, some analysts warn that a 50bps cut could spur fears of an economic downturn, which may bring increased volatility to crypto markets in the coming months. Future Cuts on the Horizon: The Fed’s decision marks a shift in policy that many believe could continue through the year. New projections suggest that interest ra​tes could fall to a range of 4.25%-4.5% by the end of 2024, indicating a potential total of 100bps of rate reductions. This ongoing easing could further boost crypto markets if investors view it as a sign of a more accommodating monetary environment. The crypto community should keep a close eye on upcoming FOMC meetings scheduled for November 7 and December 18, as well as other macroeconomic indicators like inflation data and job reports. With the Fed signaling a shift towards more accommodative policies, the relatively quiet summer in the crypto market might be over, paving the way for increased activity and potential altcoin opportunities. ​[Join Mavericks Market Tracker Today]( and make informed decisions in a dynamic market environment! ​ Best regards, ​Russell DeCorte CEO, Mavericks Market Tracker ​ ​P.S. Did you see the [latest market update](=)? ​ --------------------------------------------------------------- Your Weekly Dose of Financial Wisdom Thanks for being a valued subscriber of New Wealth Daily. Each week, new practical tips, insights, and proven wealth-building strategies are delivered straight to your inbox. Our mission is to help you navigate the world of personal finance with confidence and clarity. Spread the Word If you find our newsletter valuable, appreciate it if you could share it with your friends, family, or colleagues who might be interested in taking control of their financial future. About New Wealth Daily New Wealth Daily is your go-to source for financial education and guidance. Our team of seasoned experts brings together decades of experience in finance, investing, and wealth management. New Wealth is committed to delivering unbiased, easy-to-understand content that empowers you to make smart moves to achieve your financial goals. Have a Question? If you have any questions, suggestions, or need personalized advice, our team can help. Simply reply to this email and let us know. YouTube Fan? [Join Us On YouTube]( ​[​Secret link]()​ The New Wealth Daily Team [[facebook]​]([[instagram]​]() ​[Unsubscribe]( | [Update your profile]( | 113 Cherry St #92768, Seattle, WA 98104-2205