Sell-the-News: Bitcoin Drops as Powell Delivers Expected 25 bps Cut

Markets Eye Next Fed Chair

Bitcoin dipped after the small rate cut by the Fed, a classic “sell the news” reaction last night. Jerome Powell delivered the widely expected 25 bps cut, and Bitcoin slid from 94k down to around 90k. Once again, the Fed offered no clear outlook for next year. That’s disappointing on one hand, but also understandable since Powell is set to be replaced as Fed Chair in May.

Trump is expected to announce the new candidate in the coming weeks, and that could be a key moment. If the new chair comes in and pushes for more meaningful cuts, instead of the slow, salami-slice adjustments we’ve seen this year, that could give Bitcoin a real boost.

We’ll see. Stay tuned and hodl, guys!