Bitcoin

FOMC meeting: Rate cut sends Bitcoin soaring to $76K – What now?

Alongside Bitcoin, major altcoins also recorded gains following the Fed’s decision.

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  • FOMC meeting cuts rates for the second time.
  • BTC surged to a new ATH following the news.

The Federal Open Market Committee (FOMC) meeting on the 7th of November played out as many market watchers anticipatedwith a 25-basis-point cut to the benchmark federal funds rate. 

This decision ignited a surge in the cryptocurrency market, sending Bitcoin [BTC] soaring to a record-breaking all-time high of over $76,000, proving once again that when the Fed speaks, Bitcoin listens—and rallies.

Fed chair addresses resignation questions

Notably, the FOMC meeting brought the target range for the federal funds rate to 4.5%–4.75%.

Furthermore, it set the stage for Federal Reserve Chair Jerome Powell’s first remarks following Donald Trump’s decisive victory in the U.S. presidential election. 

When asked at the post-meeting press conference if he would step down should Trump request it, Powell responded firmly: 

“No.” 

The chairman also emphasized that the election outcome would not impact the Fed’s policy decisions in the near term. 

Trump’s criticism of Powell

Powell’s remarks came against a backdrop of longstanding tensions with Trump, who frequently criticized the Fed chair. After appointing Powell in 2017, the Democrat repeatedly voiced his dissatisfaction during his first term, accusing Powell of not loosening monetary policy at a pace he deemed sufficient.

During the conference, Powell also addressed whether a president has the authority to remove or demote the Fed chair, stating that such actions are:

 “Not permitted under the law.”

Trump’s economic strategy, which includes promises of aggressive tariffs, stricter immigration policies, and extended tax cuts, has the potential to drive up inflation and push long-term interest rates higher.

These developments could lead the Fed to reassess its approach to future rate adjustments.

Market reaction to FOMC meeting’s decision

The latest 25-basis-point rate cut marked the second consecutive reduction by the Fed, following a larger half-point cut in September.

As reported by AMBCrypto, the crypto market responded positively to the first Fed rate cut in four years, sparking a rally across major digital assets.

This time, history repeated itself as Bitcoin’s surge was accompanied by gains in other cryptocurrencies. Notably, Ethereum [ETH] appreciated by 8% followed by Solana [SOL] with an uptick of  6.5%.

Additionally, Cardano [ADA] rallied by double digits posting gains of 11.1%. 

Fed’s 2% inflation objective

Despite the political spotlight, the Fed remains committed to its economic goals. AMBCrypto noted that in September, the inflation rate reached 2.1%, inching closer to Fed’s 2% target. 


Read Bitcoin’s [BTC] Price Prediction 2024–2025


The Fed’s latest press release highlighted continued solid economic growth and eased labor market conditions. Although the unemployment rate had risen, it still remained at a low level.

The next FOMC meeting is scheduled for 40 days from now, where further policy adjustments may be considered based on evolving economic conditions.