Monetary Easing and ETF Inflows Strengthen Bitcoin Outlook Amid Fed Policy Shift
The US Federal Reserve lowered the federal funds rate by 25 basis points on October 29, bringing the new range to 3.75%-4.00%. Officials cited easing inflation, softer labor conditions, and increased downside risks to growth.
The decision also came with a plan to end balance-sheet runoff on December 1, shifting to full reinvestment of maturing Treasuries while continuing to cap MBS purchases.
Markets adjusted quickly. Chair Jerome Powell said another cut in December is “not guaranteed,” pointing to internal divisions and limited data visibility. That message tempered bets on a year-end move.
Nomura revised its call after the meeting. The bank now expects the in December, after previously projecting another 25 bps reduction. Its base case points to modestly dovish data that may not justify immediate easing.
Read more on Analytics Insight
