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The FED cut the interest rate in the United States

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The Federal Reserve of the United States (FED) announced this Wednesday, October 29, a 25 basis point cut in interest rates, setting the new range at 4% annual. This decision, which was already anticipated by part of the market, aims to ease monetary policy.

After the announcement, the price of bitcoin (BTC) has not shown a clear trend. While a decrease in interest rates is usually a bullish factor for digital assets by increasing liquidity in the financial system, the initial reaction has been moderate. This could be because the decision was already priced in by investors.

Chart showing the evolution of the U.S. interest rate since 2024.

Joel Vainstein, CEO of an exchange platform, points out in communication with this medium that “this second consecutive cut calibrates the international risk-return balance. The additional injection of liquidity can boost the price of crypto assets and open new investment opportunities, especially in light of the regulatory and technological advances in the sector.”

The focus is now on the press conference that will be held in the next few minutes by the president of the entity, Jerome Powell. His statements will be key for the markets to interpret the future roadmap of monetary policy and how it might impact assets like bitcoin.

BTC-6.97%
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