Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December

The American central bank, as generally expected, slice The federal funds focus on Wednesday with 0.25%, in the midst of recent signs that the economy staggered and needed a boost – and under non -repellent pressure from President Donald Trump.

Bitcoin and other large digital assets were largely traded flat in the immediate aftermath. The largest cryptocurrency due to market capitalization recently changed hand over $ 116,000, an increase of 0.2% in the last hour, according to Crypto Markets Data Provider Coetingecko. In recent days, BTC collected with investors who possibly prizes in the expected decision.

Ethereum, the second largest cryptocurrency per market value, traded at $ 4,501, flat in the same period.

The FED reduced the interest rate to a reach between 4% and 4.25% after a downward revision in a report from the Department of Labor, which shows that the US had created 911,000 fewer jobs than initially a period of one year in March and others with regard to economic signs. “Uncertainty about the economic prospects remains increased,” the Fed noted in a statement.

They weighed heavier than the threat of inflation, which has risen to 2.9% on an annual basis, stubbornly above the long -term goal of 2% of the bank. New sworn governor Stephen Miran, an appointed White House, did not agree with the decision and voted for a percentage of .50%.

The FED has a double mission to keep inflation low and to guarantee full employment.

In Telegram Message to Decrypt, Noelle Acheson, the author of the crypto is Macro Now Newsletter, wrote that the big deal was not the expected tariff reduction, but updated economic predictions of FED officials, which shows that central bankers are “becoming more nervous about the employment outlook”.

The big deal today was not the rate reduction (generally expected), it was the updated economic projections of FED officials – these showed that the FOMC is becoming more nervous about employment prospects, with the average expectation of 2025 austerity that now indicate two more before the end of the year. “

Acheson added that the only different opinions was remarkable and that Michelle Bowman and Christopher Waller, who did not agree with the decision of the FED’s Augustus to keep rates “, 25bp thought enough.”

This year, central bankers had not held the rates more than five meetings due to inflation problems, with FED chairman Jerome Powell promised after these decisions to stay in Focus. The bank had the rates one percentage point in three late 2024 rate reductions as the prices lowered and the expectations for extra cuts increased this year.

Anxious that his administration will be saddled with an economic coronation, Trump has strongly criticized the bank because he has not followed and has implemented the Fed governors through his own more Dovish selections. On Tuesday, Miran was sworn To serve the remaining four months of a period that opened when Adriana Kugler resigned in August.

On the same day, a Federal Court of Appeal blocked Trump’s resignation of Fed Governor Lisa Cook, which he – wrongly wrongly – was an obstacle for a rate reduction. According to countless accounts, Cook is considered less restrictive about monetary policy. Trump has also strongly criticized Powell.

The FedWatch tool of the CME, the widespread measure for investor sentiment, predicts a probability of 96% of a rate reduction in the days prior to the decision.

Nevertheless, investors are unbalanced by the feud with the White House and constant macro-economic uncertainties, including Trump’s worldwide trade war. Gold, the traditional Safe Haven Asset, rose to a record high on Tuesday above $ 3,730. It has risen more than 10% in the past month.

And a countless market turned out that almost nine out of 10 users expect the price of Bitcoin, which is often compared to gold, in September remains above $ 105,000.

(Publication: Myriad is a prediction market and engagement platform developed by Dastan, parent company of an editorial independent Decrypt.)

In her newsletter on Tuesday, Acheson noted that updated projections from the end of the year for unemployment and inflation and the comments of Powell about the approach of the Fed after the announcement of Wednesday can “encourage or ghost”.

“He might not be able to avoid anything at all, but that would be a signal himself. Whether he could show that a new relaxation cycle started, with successive cuts in the coming months. Or he could repeat the need to wait for more information about inflation and employment,” wrote Acheson. “As usual, his words will be carefully dissected for deviations from the expected tropics, and as usual, too much will be read.”

UPDATE (September 17, 2025, 2:35 PM et): Adds Acheson comments, FED statement and voice data.