Bitcoin bounces on Fed rate cut with bigger rally ahead predicted

Crypto markets experienced a slight recovery after the US Federal Reserve implemented its third consecutive interest rate cut this year. Analysts, including those from Santiment, noted that while each cut has historically triggered short-term sell-offs following a "buy the rumor, sell the news" pattern, a subsequent bounce typically occurs once the immediate reaction fades, offering predictable trading opportunities. Lower rates generally boost risk appetite for assets like crypto. Jeff Ko, Chief Analyst at CoinEx, stated the cut was expected, though the Fed's dot plot was slightly hawkish; however, the market interpreted the move as mildly bullish, lifting stocks and Bitcoin. Furthermore, Jurrien Timmer of Fidelity Investments observed that while Bitcoin has underperformed stocks this year, the market structure suggests maturation compared to previous cycles. Following the cut, Bitcoin dipped below $90,000 but recovered to $93,500 before settling around $92,300.

(Source：Cointelegraph)