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The U.S. Federal Reserve lowered interest rates by 25 basis points on Wednesday, setting the federal funds target range to 4.00%–4.25% – its fourth cut since September 2024. The decision, passed 11–1 by the FOMC, aligns with market expectations and signals a potentially bullish tailwind for risk assets like 
Bitcoin and Ethereum.
What’s the Scoop?
- Liquidity Boost Incoming: As interest rates fall, traditional fixed-income investments become less attractive. Analysts expect this latest cut—and two more projected by year-end—to drive capital toward higher-risk assets, including crypto.
- Political Pressure Builds: President
Donald Trump has repeatedly pushed for steeper rate cuts since returning to office in January, even suggesting he might fire Fed Chair Jerome Powell. On Monday, Trump posted that the Fed must cut rates “bigger than [Powell] had in mind.” - Crypto Market Reaction Mixed: Bitcoin traded around $116,000, down 0.7% on the day, while
Ethereum rose slightly to $4,483.
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