Crypto Market Maintains Bullish Momentum as Fed Lowers Rates

The Federal Reserve’s Federal Open Market Committee (FOMC) reduced the US interest rate by 25 basis points on November 7, bringing it down to 4.5% from 4.75%. The crypto and equity markets showed limited reaction, with most investors anticipating the cut.

Bitcoin (BTC) rose by 1% in the last 24 hours, currently priced at $76,644.57, while Ethereum (ETH) posted a stronger gain of 7.4%, reaching $2,888.21. Solana (SOL) is also nearing the $200 mark, increasing 4.6% over the same period. The overall crypto market cap climbed 1.3% to approach $2.7 trillion.

Real-world asset (RWA) protocol tokens led market growth with an impressive 11% increase over the past day, nearly five times the market average of 2.3%, according to data from Artemis.

US equity markets showed similar stability following the FOMC’s announcement. The S&P 500 rose by 0.9%, and the Nasdaq gained 1.62%, extending previous gains ahead of the rate cut.

Outlook Uncertain Amid Inflation Goals

Federal Reserve Chair Jerome Powell commented on continued economic growth and a slight easing in the labor market, with unemployment ticking up but still remaining low. He emphasized the Fed’s ongoing focus on bringing inflation closer to the 2% target, though current levels remain elevated.

Powell reiterated that future rate decisions would hinge on evolving data, economic conditions, and balancing risks to employment and inflation. He added that short-term changes, even over one or two months, are unlikely to influence policy shifts significantly. The recent election results, Powell noted, would not impact near-term monetary policy decisions.