Fed's Rate Cut Sparks Market Reaction, Boosts Cryptocurrency Confidence

According to PANews, the Federal Reserve implemented its third interest rate cut of the year this month and indicated a reduction in rate cuts for 2025 due to uncertain inflation prospects. This decision disappointed investors who anticipated that rate cuts would enhance corporate profits and valuations, leading to a stock market decline. However, this may not hinder the rise of alternative assets like cryptocurrencies. Damon Polistina, Head of Research at investment platform Eaglebrook Advisors, noted that the incoming pro-cryptocurrency Trump administration is introducing several catalysts that are boosting investor confidence in cryptocurrencies. This month, Bitcoin's price surged above $107,000, driven by more favorable policies under Trump. Polistina added that cryptocurrencies are widely viewed as risk assets, making the Fed's rate cuts a positive development. Any positive economic data in early January could help maintain the momentum observed.