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Fed Announces 25 bps Rate Cut, Crypto Market Yet to Respond, Bullish or Bearish Reaction Ahead?

Fed Announces 25 bps Rate Cut, Crypto Market Yet to Respond, Bullish or Bearish Reaction Ahead?

CryptonewslandCryptonewsland2025/09/18 09:45
By:by Nicole D'souza
  • Fed announces 25 bps rate cut, explaining in detail the reasons behind their decision.
  • One analyst believes the announcement is already priced in and a correction lies ahead.
  • Others wait to see how the crypto market reacts, a bullish or bearish response?

Fed announces 25 bps rate cut in its FOMC meeting as Fed Chair Jerome Powell reveals the Federal Reserve Board ’s decision and the reasons behind the decision. Most members of the crypto community expected a rate cut announcement, and as Powell had mentioned before, these would be short spaced out cuts and not one huge cut, like a 75 bps cut as President Trump was hoping to see. 

Fed Announced 25 bps Rate Cut 

The Federal Reserve Board and its Chair Jerome Powell have been pressured to announce rate cuts for months, most of this pressure coming from US President Trump, who hoped to see a three-point rate cut, which is a 75 bps cut. But Powell and the Board stood strong, they were adamant that rate cuts would only be announced if certain criteria had been met, one of them being plummeting unemployment rates. 

What’s more, Powell also stated that if rate cuts were to be announced, they would be spaced out with short rate cuts announced at appropriate intervals as the criteria reacted to market changes. Thus, in the latest FOMC speech, Powell announced a 25 bps rate cut, breaking down the decision and the reasons behind the decision. Starting off the 25 bps cut marks up to a 4.25% rate cut. 

FOMC ✅ 25 bps Rate Cut ✅
The Market Will Now Decide Direction…

FULL BREAKDOWN 👇

Main Decision
•⁠ ⁠Fed cut rates by 25 bps to 4.25%.
•⁠ ⁠⁠Powell: It was a “risk management cut.”
•⁠ ⁠⁠He noted “there was not widespread support for a 50 bps cut.
•⁠ ⁠⁠Fed… pic.twitter.com/swuqs6wtDq

— Crypto Banter (@crypto_banter) September 17, 2025

As the post above mentions, Powell calls this a risk management cut and notes that there was no widespread support for a 50 bps cut, and concluded by saying that the Fed projects Fed Funds Rate at 3.6% by year-end. As for the labor market, he states that the hiring rate is very, very low, and the layoff rate being very low. With labor demand having softened, the downside risks to employment have risen. He concludes saying both supply and demand for jobs are sharply down. 

As for inflation and the economy, Powell states that there are early signs that goods prices are showing through to higher inflation. ⁠“Over the course of this year, we have kept our policy at a restrictive level.”, he says. Additionally, he mentions that the growth of economic activity has moderated, and activity in the housing sector remains weak. He ends his speech stating that waiting to announce a rate cut seems to have been the right decision. 

How Will the Crypto Market Respond? 

The herd wakes up and realizes that 25bps is already priced into the markets. Congratulations on catching up with reality! Late as always! At this point, preparations should already be DONE! Prepared myself 30 days ago for this day! Holding zero spot, and fully in USDT/ Short pic.twitter.com/P6b9KJP9cZ

— Doctor Profit 🇨🇭 (@DrProfitCrypto) September 17, 2025

As we can see from the post above, a reputed crypto analyst , known for having made several accurate market predictions, states that he already predicted this 25 bps rate cut announcement and says that the crypto market did not react because the announcement was already priced in. Now, he expects to see a huge fall in crypto market prices and expects September to close in bearish red .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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