The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) reduced interest rates by 25 basis points on Wednesday, setting the new Federal Funds target range at 3.75%–4%.
The decision came as no surprise to investors, who had largely priced in the rate cut well before the announcement. According to Matt Mena, market strategist at 21Shares, the move was “expected across the board.”
“Historically, November has been one of Bitcoin’s strongest months, posting gains in 8 of the past 12 years with an average return of over 46%. We still lean moderately risk-on and believe Bitcoin could retest its all-time highs before the year ends,” Mena said.
However, the markets responded quietly to the news. Bitcoin (BTC) slipped roughly 2.4% to around $111,600, following Fed Chair Jerome Powell’s remarks suggesting that committee members remain split on whether to approve another cut in December.
“The unexpectedly hawkish tone from one of the regional Fed presidents shows that divisions within the Fed are deepening,” said Michael Pearce, deputy chief U.S. economist at Oxford Economics.
Such disagreement could delay further easing and restrict liquidity that might otherwise flow into equities and cryptocurrencies, keeping risk assets under pressure.
Eyes on 2025 policy trajectory
The Fed kicked off its rate-cut cycle in September 2025 with an initial 25 bps reduction — a move that helped propel Bitcoin to record highs above $125,000.
According to data from the Chicago Mercantile Exchange (CME), 56% of traders now expect the Fed to deliver another cut in December, lowering rates to a 3.5%–3.75% range.
Major Wall Street institutions, including Goldman Sachs, Citigroup, and Bank of America, have all projected at least two additional rate cuts through 2025.
While rate cuts generally act as a tailwind for risk assets, the ongoing U.S.–China trade tensions could counterbalance that optimism, keeping investors cautious despite a looser monetary environment.
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