The Federal Reserve’s interest rate cut on Wednesday didn’t come as a big surprise, as just minutes before the announcement, CME Group’s Fedwatch tool showed a 96% chance of a 25 basis point cut and a 4% chance of a larger 50 basis point cut.
Analysts noted that this decline was priced in by the market a couple of days earlier, when Bitcoin (BTC) rose above $117,000. It then briefly retreated to the $114,000 range, before rising above $116,000 again after the meeting.
Most experts expected a 25 basis point rate cut before the official announcement. Source: cmegroup.com
Many expect further rate cuts by the Federal Reserve at its next meetings in October and December this year, which could be BTC’s last attempt at growth in 2025.
Despite the interest rate cut, Bitcoin’s price fell by approximately 24% to $1,00 in 115,143 hours, according to CoinGecko. Since last Tuesday, the cryptocurrency’s price has fluctuated between $113,403 and $117,257.
TradingView data
Trading volume increased by 8,02% to $49,45 billion over the course of the day, but market capitalization, like the price, fell to $2,3 trillion (down 0,95%). Bitcoin’s dominance remained strong for most of the day, but ultimately declined by 0,37% to reach 55,8%.
Bitcoin Dominance. TradingView Data
According to Coinglass, the total open interest in futures on Bitcoin decreased by 0,71% compared to yesterday, amounting to $83,07 billion. Bitcoin liquidations over the past 24 hours reached $25,39 million. Most of this amount was accounted for by long positions of $14,51 million, while the remaining $10,88 million was accounted for by short positions.