Fed's interest rate decision: Electronic Money recovers with a $2.9 trillion increase in the context of

The Fed has paused interest rate hikes for the second time under Trump, staying tuned at 4.25%-4.50%, and the crypto market wasted no time in recovering! With a comeback worth $2.9 trillion, investors are now eyeing the possibility of cutting down the whales after the Fed adjusted its GDP forecast. This decision was made as the central bank continues to monitor economic conditions, inflation, and job growth. The Fed currently expects to have fewer rate cuts this year, with only 11 out of 19 FOMC members seeing at least two cuts, down from 15 in December. Fall slower than the balance sheet starting in April Crypto market analyst MartyParty emphasizes that the Federal Reserve will slow down its Quantitative Tightening (QT) starting from April 1, just as he predicted. This means the Fed will cut the speed of balance sheet reduction, signaling a change in monetary policy.

According to the plan, they will be cutting down the whales in monthly Treasury bond buybacks from $25 billion to $5 billion while staying tuned to the agency's debt limits and the mortgage-backed securities (MBS) at $35 billion. This move aims to maintain financial stability while gradually reducing the Fed's holdings. The impact of cryptocurrency A crypto analyst, Fefe Demeny, pointed out that the quantitative tightening policy (QT) will not end anytime soon, although some crypto traders expect a price surge when the quantitative easing policy (QE) begins. Meanwhile, Powell confirmed that the Fed will again slow down QT but extend it over a longer period, meaning liquidity will not flood into the market as quickly as some hope. Santiment emphasizes that although Powell confirmed expectations of two interest rate cuts by the end of this year, economic growth is now forecasted to slow down to 1.7%, down from the previous forecast of 2.1%. Inflation remains a concern, especially as new tariffs could potentially slow price stability. After the announcement, both cryptocurrencies and stocks reacted positively, with Santiment noting that the crypto market may continue to reflect the S&P 500, although altcoins may face increased volatility. Meanwhile, the crypto market has recovered ahead of the Fed meeting, reaching a market capitalization of $2.9 trillion. Bitcoin surged to over $85,000, while ETH, SOL, and XRP increased by 5%, 7%, and 10%, respectively. The hype is building around Trump's upcoming speech on crypto policy at DAS. Powell warns about inflation and the weakness of consumers However, Fed Chairman Jerome Powell noted that the U.S. economy remains strong, but there are signs that consumers may be struggling. Inflation, although lower than before, is still somewhat high. Powell also warned that new tariffs and global economic changes could slow progress in reducing inflation. However, he reassured that the Fed will closely monitor the situation and adjust policies if necessary.