Bitcoin price sold off, and the wider crypto market corrected following the Federal Reserve's hawkish 2025 outlook on inflation.
Bitcoin and the wider crypto market sold off as the Fed announced a 25 basis point rate cut to its benchmark policy rate and signaled that fewer rate cuts than initially planned could take place in 2025.
Following Fed chair Jerome Powell’s post-rate cut presser, Bitcoin (BTC) price dropped 4.6% to $101,300, while Ether (ETH) fell 5.96% to $3,600.
Although market participants had anticipated a 0.25% rate cut, which ticks a box for most traders with bullish price expectations, Powell’s indication that only two more rate cuts would occur in 2025 raised eyebrows. Adding to what some traders view as a hawkish outlook, the Fed committee also raised their 2025 inflation outlook from 2.1% to 2.5%.
