BREAKING: Fed 2026 Outlook â Bull or Bear? đ
đșđž The US Federal Reserve has cut interest rates by 25 basis points, lowering the target range to 3.50%â3.75%, but its mixed signals are tempering hopes for immediate Bitcoin gains.
Fed Chair Powell emphasized that âthere is no risk-free path,â signaling a cautious approach moving forward. This led to a âbuy the rumor, sell the newsâ reaction, with Bitcoin failing to maintain momentum. Analysts point out that the Fedâs cautious tone has muted risk appetite for the cryptocurrency.
Lower interest rates usually favor riskier assets like Bitcoin by reducing the attractiveness of yield-bearing investments such as bonds and boosting market liquidity. However, the Fedâs cautious messaging has raised questions about Bitcoinâs role as an inflation hedge. Market attention is now more focused on the long-term path for rate cuts and the potential for continued institutional investment via ETFs.
Current data indicates that traders are skeptical about further declines before 2026.