News View Non-AMP

Fed’s Third Rate Cut of 2024, Will It Revive XRP and Bitcoin Prices?

Published by
Chandan Gupta

As expected, on December 18, 2024, the Federal Reserve lowered the key interest rate by 25 bps, the third consecutive reduction so far in 2024. However, this rate cut announcement cautioned us about additional reductions in the coming years. 

Fed Cuts Rates by 25 Basis Points

This decision has officially lowered the federal funds rate to 4.25% from 4.50%. While inflation remains slightly above the central bank’s target, it has significantly declined from the 40-year high reached during the pandemic peak.

Although the effects of this latest rate cut may not be immediately noticeable, it marks a critical step in what appears to be a broader effort by the Federal Reserve to continue reducing rates over time.

Despite this expectation of a rate cut, the overall cryptocurrency market remained declining ahead and following the FED announcement. Additionally, there is no sign of price recovery across the crypto market.

Will the Crypto Market Recover?

According to Coinmarketcap, the overall cryptocurrency market is down by 2.62%. In contrast, major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) witnessed a price decline of over 2.65%, 2.30%, 4.69%, and 5.15% respectively in the past 24 hours.

Source: Coinmarketcap

Based on the historical data, the rate cut is undoubtedly favorable for the financial market, including cryptocurrency. However, Min Jung, the research analyst at Presto Labs cited that the upcoming rate cut would create the least impact on Bitcoin’s BTC price.

However, during the meeting, Federal Reserve Chair Jerome Powell stated that the Fed is ‘not allowed to own Bitcoin.’ This statement by the Fed Chair could have a significant impact on the cryptocurrency market and may lead to a price decline in the coming days.

A few analysts further add that the recent rate cut may support the recent price decline to recover soon and gain losses.

Chandan Gupta

Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

Recent Posts

Joseph Stiglitz Slams Trump Crypto Policies, Warns of Tax Evasion Risks

Nobel Prize-winning economist Joseph E. Stiglitz has issued a serious warning: Former President Donald Trump’s…

April 26, 2025

Charles Hoskinson Confirms XRP Integration and Midnight Airdrop for Holders

In a recent "Ask Me Anything" session on YouTube, Cardano founder dropped major updates on…

April 26, 2025

India Can Use Crypto to Weaken Pakistan, Avoid 9/11 Mistakes: Balaji Srinivasan

In a world where conflict often seems like the only solution, renowned crypto expert and…

April 26, 2025

Virtuals Protocol Price Prediction 2025, 2026 – 2030: Will VIRTUAL Price Hit $5?

Story Highlights The Virtuals Protocol price today is . VIRTUAL price could reach a high…

April 26, 2025

Pi Coin Resumes Trading on BitMart After Banxa Suspension: What’s Next for Pi Network?

Pi Coin, once a rising star in the crypto space, has faced significant setbacks recently,…

April 26, 2025

Justin Sun Reveals Tron’s TRX Shocking Bitcoin Correlation

When speaks, the crypto world listens.  Today, the Tron founder stirred the pot with a…

April 26, 2025