Derived from Coinpedia, on December 18, 2024, the Federal Reserve announced a 25 basis point reduction in the key interest rate, marking the third consecutive cut this year. This decision lowered the federal funds rate to 4.25% from 4.50%. Despite the rate cut, the cryptocurrency market, including major coins like Bitcoin, Ethereum, XRP, and Solana, experienced a decline in prices. Bitcoin and Ethereum fell by over 2.65% and 2.30%, respectively, while XRP and Solana saw declines of 4.69% and 5.15%. Analysts suggest that while rate cuts are generally favorable for financial markets, the immediate impact on Bitcoin's price may be minimal. The overall cryptocurrency market is down by 2.62%, according to Coinmarketcap. The Federal Reserve's move is part of a broader strategy to reduce rates over time, despite inflation remaining slightly above target.
Fed's Third Rate Cut of 2024: Impact on XRP and BTC Prices
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