Bitcoin could likely continue on a positive trajectory. The FED is expected today to cut the target federal funds rate by 25 basis points, bringing the range to 3.5% – 3.75%. Such a move would result in the lowest borrowing costs since 2022 and would continue similar cuts made in September and October.

Bitcoin reacts to FED meeting

The decision comes at a time when the U.S. labor market is visibly cooling. Market bets currently expect two additional 25-basis-point rate cuts, likely in March and September of next year, according to TradingEconomics.

Amid the FED’s decision, Bitcoin saw a remarkable reversal, jumping from levels just above $90,000 to around $94,650. An unexpected rapid increase of over $3,000 occurred in less than an hour. This movement underscores a sudden revival of buying interest.

A similar boost was observed in other major assets. Ethereum rose by about 5%, while Cardano and Chainlink tokens gained slightly higher profits. Other markets, such as precious metals, also experienced growth.

Volatility caused by U.S. interest rate decisions can serve as an opportunity for a favorable Bitcoin purchase before potential further growth. If you decide to use this situation on the Binance exchange, you can not only get a better price but also receive an additional $100 bonus.

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Decision already priced in

Analysts point out that there was no clear trigger for this rise. It is reportedly a change in investor behavior, who had been selling after U.S. market openings for several weeks. The current move may only indicate a fatigue of sellers.

It is important to note that the FED move was already priced in by the market. However, milder financial conditions combined with a resilient U.S. economy could support continued interest in riskier assets. Crypto markets are thus entering a period that may bring increased volatility, but also opportunities.

Although the expected FED decision is already reflected in the price, today, December 10, may bring increased volatility as the meeting concludes today. In the long term, however, it is unlikely to have a significant market impact. Short-term speculators are more likely to take advantage of the situation.

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