What happened?
The Federal Reserve is widely expected to cut interest rates by 25 basis points to 4.00%, and investors are braced for the FOMC statement and Powell’s press conference. Bitcoin jumped nearly $2,000 in 24 hours and was trading around $112,892 as markets priced in easier policy. Traders are watching Powell’s tone closely for clues on the pace of future cuts and how that will affect risk assets.
Who does this affect?
This affects traders and investors across stocks, bonds and crypto who will reprice risk and adjust positions based on the Fed’s guidance. Borrowers and savers are impacted too — lower rates tend to help borrowers and put downward pressure on savings yields. Crypto projects, DeFi builders, and speculators in tokens like Bitcoin Hyper could see increased interest if liquidity flows into higher-risk assets.
Why does this matter?
A confirmed rate cut or dovish signals would likely weaken the U.S. dollar and push more capital into risk assets, which can fuel further gains in Bitcoin and equities. On the technical side, a breakout above $117,600 could open targets above $120k while a failure could trigger a pullback, so volatility and trading opportunities should rise. In short, Fed policy will be a key driver of short-to-medium-term market direction and asset allocation decisions.