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Bitcoin Unmoved After Fed’s Rate Cut, Analysts Predict Long-Term Gains
Bitcoin barely budged on Wednesday despite the U.S. Federal Reserve’s first interest rate cut of the year, leaving analysts divided on the short-term impact but broadly optimistic about the months ahead.
Fed Delivers a “Risk-Management Cut”
The central bank lowered the federal funds rate to a range between 4.25% and 4.50%, marking its first move after five consecutive meetings of holding rates steady. Fed Chair Jerome Powell described the decision as a “risk-management cut,” noting slowing job gains and persistent inflation as key factors.
Powell emphasized rising downside risks in the employment market, while acknowledging that higher tariffs were already pushing up some prices. “The balance of risks has shifted accordingly,” he said. Median projections suggested the rate could fall to 3.6% by year-end, with further declines expected into 2026 and 2027.
Bitcoin’s Flat Reaction
Six hours after the announcement, Bitcoin traded near $117,000, largely unchanged over 24 hours, according to CoinGecko. Prices later slipped slightly to $116,600 as investors had already priced in the move. U.S. equities followed a similar pattern, with the Nasdaq and S&P 500 both dipping after an initial rally earlier in the week.
Analysts See Long-Term Tailwinds
Market experts told Decrypt they expect the easing cycle to ultimately support crypto. Ira Auerbach, former head of digital assets at Nasdaq, said easier financial conditions ahead “should be supportive of the crypto ecosystem.” Gerry O’Shea of Hashdex highlighted ongoing demand from corporate treasuries and ETFs as potential drivers for Bitcoin in the coming weeks.
Meanwhile, Stephane Ouellette, CEO of FRNT Financial, framed Bitcoin as an alternative to fiat devaluation, predicting that continued cuts would push more investors toward digital assets.
For now, Bitcoin remains steady—but with Wall Street bracing for more rate cuts, the stage may be set for fresh momentum in the months ahead.
