Crypto Markets Stay Strong Following Federal Reserve’s Recent Rate Cut

Following the Federal Reserve’s announcement of its most recent interest rate cut—the first since Donald Trump took office—Bitcoin and the broader cryptocurrency market have proven resilient. The Fed lowered U.S. funding rates by 25 basis points on November 7 after lowering them by 50 basis points in September.

While the entire cryptocurrency market continued to rise, Bitcoin stayed stable above $76,000. Following the announcement, Wall Street saw a surge, while the CBOE Volatility Index—which is sometimes used as a proxy for market uncertainty—showed a decline.

Rate Cut Signals Confidence, but Crypto Prices Remain Steady

Despite the positive sentiment in traditional financial markets, cryptocurrency prices remained largely unchanged following the Federal Open Market Committee (FOMC) meeting. Social media voices suggested that FOMC rate decisions may have less sway over digital assets than in the past, as these assets may be more resilient to conventional financial policy shifts.

Proponents of cryptocurrency also observed that the Fed omitted language regarding “greater confidence on inflation” from its official statement, hinting at potential adjustments in future monetary policies. Speculation grew that these subtle changes were influenced by recent elections and possible upcoming shifts in the Fed’s approach.

Federal Reserve Chair Jerome Powell addressed the omission of inflation-related language, emphasizing that this was not intended as forward guidance but rather a drafting revision. “Removing language about ‘greater confidence’ on inflation is characterized as a drafting step,” Powell explained.

This rate cut also brings back familiar tension between Trump and Powell, who have had public disagreements over the Fed’s rate policies. Though Trump appointed Powell in 2017, he has since criticized the chair for maintaining a cautious rate environment, arguing it hindered U.S. economic growth. Amid rumors about a possible resignation request if Trump resumes office, Powell dismissed speculation, asserting his commitment to remaining in his position.

With Fed policy adjustments unlikely to target short-term data or political changes, cryptocurrency advocates view the market’s stability as a testament to the sector’s long-term resilience. This stable response may signal the growing maturity of digital assets amid traditional market shifts.