{"id":28793,"date":"2025-09-19T10:11:30","date_gmt":"2025-09-19T10:11:30","guid":{"rendered":"https:\/\/metaverseplanet.net\/blog\/?p=28793"},"modified":"2025-12-29T11:44:28","modified_gmt":"2025-12-29T11:44:28","slug":"bitcoin-strengthens-after-feds-interest-rate-cut","status":"publish","type":"post","link":"https:\/\/metaverseplanet.net\/blog\/bitcoin-strengthens-after-feds-interest-rate-cut\/","title":{"rendered":"Bitcoin Strengthens After Fed\u2019s Interest Rate Cut: Expectations for a New Record High Increase"},"content":{"rendered":"\n<p>The price of <strong>Bitcoin<\/strong> is reacting positively to the Fed&#8217;s interest rate cut and its contradictory economic outlook. While plans for further cuts support <strong>risky assets<\/strong>, analysts predict that Bitcoin could reach new record levels in the final quarter of the year.<\/p>\n\n\n\n<p>The price of <strong><em><a href=\"https:\/\/metaverseplanet.net\/bitcoin\/\">Bitcoin<\/a><\/em><\/strong> is, for now, reacting quite positively to the <strong>interest rate cut<\/strong> made by the <strong>US Federal Reserve (Fed)<\/strong> last Friday. The primary reason for this is the set of expectations the Fed shared for the coming years following its decision. These expectations are quite <strong>contradictory<\/strong> and are causing the Fed to show its hand.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A Contradictory Federal Reserve<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"788\" height=\"443\" src=\"https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments.jpeg\" alt=\"\" class=\"wp-image-20776\" srcset=\"https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments.jpeg 788w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments-300x169.jpeg 300w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments-768x432.jpeg 768w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments-390x220.jpeg 390w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/11\/U.S.-City-Now-Accepts-Bitcoin-for-Tax-Payments-150x84.jpeg 150w\" sizes=\"(max-width: 788px) 100vw, 788px\" \/><\/figure>\n\n\n\n<p>In the economic projections accompanying the interest rate decision, the Fed announced the following points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They expect <strong>higher economic growth<\/strong>.<\/li>\n\n\n\n<li>They expect <strong>lower unemployment<\/strong>.<\/li>\n\n\n\n<li>They expect <strong>higher inflation<\/strong>.<\/li>\n\n\n\n<li>And they plan to make <strong>more interest rate cuts<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>The big question is this: If a <strong>stronger economy<\/strong> and <strong>higher inflation<\/strong> are expected, why are MORE <strong>interest rate cuts<\/strong> desired? Normally, fewer rate cuts would be anticipated in such a scenario.<\/p>\n\n\n\n<p>If the Fed&#8217;s expectations materialize, which the current outlook supports, the economy will no longer need additional stimulus.<\/p>\n\n\n\n<p>This is precisely why <strong>Bitcoin<\/strong> and other <strong>risky assets<\/strong> reacted so strongly to the interest rate decision.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote quote-solid is-layout-flow wp-block-quote quote-solid-is-layout-flow\">\n<p>Finspresso Macchiato 18-09 | de dagelijkse marktupdate die je bij een espresso leest \u2615\ufe0f Markten groen na renteverlaging Amerikaanse centrale bank \ud83d\udcb8\ud83d\udcb0 Je bent er ongetwijfeld van op de hoogte dat de Amerikaanse centrale bank gisteren zijn beleidsrente met 0,25 procentpunt\u2026<a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.google.com\/search?q=https:\/\/pic.twitter.com\/eR9xKU0UPc\">pic.twitter.com\/eR9xKU0UPc<\/a>\u2014 Thom Derks \ud83d\udd8a (@_Thom_Derks_) September 18, 2025<\/p>\n<\/blockquote>\n\n\n\n<p>In essence, the <strong>Fed<\/strong> is revealing its cards here and indirectly showing that it is bowing to the power of <strong>Donald Trump<\/strong>. <strong><em><a href=\"https:\/\/metaverseplanet.net\/blog\/donald-trumps-cryptocurrency-platform-launches\/\" data-type=\"post\" data-id=\"20138\">Trump<\/a><\/em><\/strong> had demanded <strong>interest rate cuts<\/strong>, and it now appears he is getting them.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Is Bitcoin Heading for New Record Highs?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-1024x576.jpeg\" alt=\"\" class=\"wp-image-20396\" srcset=\"https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-1024x576.jpeg 1024w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-300x169.jpeg 300w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-768x432.jpeg 768w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-390x220.jpeg 390w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-150x84.jpeg 150w, https:\/\/metaverseplanet.net\/blog\/wp-content\/uploads\/2024\/10\/Microsofts-Bitcoin-Investment-Proposal-Shareholder-Vote-Needed-scaled.jpeg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Barring a major panic (for example, a collapse in the <strong>labor market<\/strong> or a rapid rise in <strong>inflation<\/strong> and <strong>long-term interest rates<\/strong>), the path appears clear for <strong>Bitcoin<\/strong> to reach new <strong>all-time highs<\/strong> in the <strong>fourth quarter<\/strong> of the year.<\/p>\n\n\n\n<p>For now, thanks to this interest rate decision by the <strong>Fed<\/strong>, all indicators are flashing a <strong>green light<\/strong> for <strong>Bitcoin<\/strong>.<\/p>\n\n\n\n<p><strong>Two more interest rate cuts<\/strong> are planned for <strong>2025<\/strong>, even though the economy does not appear to need them at first glance. From this perspective, it seems <strong>Trump<\/strong> has achieved his goal: interest rates are falling.<\/p>\n\n\n\n<p>For the <strong>average American<\/strong>, this situation is not very positive, as it means <strong>higher inflation<\/strong>. However, it is quite beneficial for <strong>investors<\/strong>, as this development will most likely drive the prices of <strong>financial assets<\/strong> higher.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price of Bitcoin is reacting positively to the Fed&#8217;s interest rate cut and its contradictory economic outlook. While plans for further cuts support risky assets, analysts predict that Bitcoin could reach new record levels in the final quarter of the year. The price of Bitcoin is, for now, reacting quite positively to the interest &hellip;<\/p>\n","protected":false},"author":1,"featured_media":23963,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAown96uCw:productID":"","footnotes":""},"categories":[309],"tags":[70,317],"class_list":["post-28793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-web3new","tag-bitcoin-news-and-content","tag-crypto-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts\/28793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/comments?post=28793"}],"version-history":[{"count":0,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts\/28793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/media\/23963"}],"wp:attachment":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/media?parent=28793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/categories?post=28793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/tags?post=28793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}