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"The Federal Reserve has cut interest rates by 25 basis points, marking the first cut of 2025. This move could fuel a powerful new leg up for Bitcoin and crypto, but it also raises serious risks for markets.
Nic breaks down what the Fed’s pivot means for Bitcoin, altcoins, and the broader economy. With analysts calling for $150K–$200K BTC and altseason heating up, the bull case is strong. But stagflation, stock correlations, and leveraged risks could quickly flip the script.
The months ahead will be decisive — is this the start of a massive rally, or a setup for volatility and correction?"
~ Coin Bureau
The Federal Reserve's recent decision to cut US interest rates by 25 basis points marks a significant shift in monetary policy for 2025. This move, while not unanimous, signals a dovish trend within the Fed, with some officials even advocating for a more aggressive cut. Fed Chair Jerome Powell described it as a "risk-management cut," acknowledging a softening labor market and elevated inflation, a classic stagflationary challenge. The updated dot plot from the Fed projects two more 25 basis point cuts before the end of 2025, though this consensus is fragile.
This pivot by the Federal Reserve has generated volatility across all asset classes. Traditional markets saw mixed reactions, with US stocks whipsawing and gold surging to record highs. Bitcoin experienced a volatile day, initially spiking before dropping and ultimately finishing slightly down, trading around $118,000. Looking ahead, the market anticipates further rate cuts, with a high probability of cuts in both October and December. This easier monetary policy is historically seen as a tailwind for the crypto market, especially with increasing institutional adoption through Bitcoin ETFs, leading to bullish forecasts for Bitcoin's price. However, risks remain, including Bitcoin's correlation with the NASDAQ, making it vulnerable to broader market downturns, and the potential for stagflation to create a challenging environment for risk assets.
00:00 – Intro
01:01 – Fed Rate Cut 2025 Explained
01:53 – Powell Speech FOMC Highlights
03:12 – Market Reactions: Stocks, Gold & Bitcoin
05:50 – Bitcoin Bull Run & Altcoin Season Outlook
08:01 – Crypto Risks: Stagflation, Stocks & Leverage
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=mkgQx9rtEo8
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
