Bitcoin may have kicked off the rebound to $ 100,000 in 2025, but since the release of the Federal Public Market Committee on the US Federal Reserve on January 8th. BTC/USD The exchange rate has dropped to a low of $ 91,220.84.
Bitcoin has been stable for about $ 95,000 since then, but it has a negative impact on the performance of bitcoin and other cryptocurrencies on the future direction of interest rates and monetary policy. There is a growing concern.
The cryptocurrency has become more and more sensitive to policy changes from the Federal Reserve. With this in mind, let’s take a closer look at the latest news from the Fed and see what the performance of both bitcoin and altcoin means in the next few months.
Why Cryptos fell to the latest Fed News
As revealed in the FRB meeting recorded above, the Central Bank has reduced 0.25 % again, that is, 25 basis points. This was in line with expectations. However, the latest rate reduction arrived as expected, but other take -outs from the meeting of the meeting caught investors outside the guard.
That is, the signaling of the Fed plan Reduce the number of 25 -base point rate reduction in 2025。 Before the meeting of the meeting visited the street, the market was still hoping for such reductions throughout the year. The latest statements from Fed staff on quantitative tightening suggest that this year’s Fed Pivot is not as fast as the previously expected transition from Hawkish to Dwish.
Considering this, it is not completely surprising that Bitcoin encountered a negative volatility again. It is not surprising that Altcoins, which are more unstable, such as EtherEum, Solana, and Dogecoin, have experienced two -digit decrease last week. As a “risk -on” asset, cryptocurrencies, especially Altcoins, will improve their performance in the era of fiscal policy of accommodation.
However, the Fed may not have changed to Dovish as expected, and is actually engaged in financial tightening, but the impact of these policy decisions on the 2025 cryptocurrency price seems to have been found at a glance. It may not be as bad as you can see.
What does this mean the price of bitcoin and Altcoin in 2025?
The cryptocurrency market has responded negatively to the current policy game plan of the Fed, but stated that the plan could rise further to bitcoin and other cryptocurrencies. One is planned to reduce 25 basic points, which still means further looseness of monetary policy and helps justify the additional benefits of this “risk -on” asset class.
Second, there are other positive factors that can be upside down for the largest cryptocurrency due to market capitalization. These include an increase in institutional investors and retail investors, and ghosts in the next Trump administration, which are more advantageous.
Binance CEO Richard Ten commented on what it could be expected in the encryption industry in 2025: Cryptocation regulations have gained significant growth around the world in 2024, and are expected to grow even more in 2025. Given that recent US presidential elections and new governments have been expected, we hope that other countries will pursue leads from the United States and enact more laws. all over the world. “
TENG states: “From the perspective of institutional interests, financial companies such as BLACKROCK and Fidelity have entered the Crypto Business in 2024. More companies have learned about encryption and integrates encryption functions such as tokenization into business. However, I am expecting more developments for many years.
Certainly, the recently announced change in the Fed interest rate reduction plan could have a negative effect on Altcoins’s performance in the short term. Altcoins is much more sensitive to change of financial policy. Nevertheless, if the blemade continues with bitcoin, it may also spread to the Altcoin space. Investors who benefit from continuous driving of bitcoin prices can circulate profits to Ethereum, XRP, Solana, other major and emerging altcoins.
Conclusion
For a longer period of time, the Fed’s decision to reduce interest rates more carefully and relax fiscal policy may hardly threaten the long -term beef lawsuit of cryptocurrency. Due to various trends, such as the rapid increase in cryptocurrency investment products traded on exchanges, the influx of institutions and retail capitals to cryptocurrency is continuing.
Of course, there is nothing certain. For example, after the latest JOBS report, the question is growing whether the Fed will do so. Furthermore, we will make a plan to reduce interest rates for 2025。 Even if the Fed is sticking to the current plan, this asset class is very unstable. Attention and patience are important.
Nevertheless, not only the Fed’s news but also other positive trends into account, the tables are still in the table of long -term prices with bitcoin and other cryptocurrencies.
