Bitcoin Tumbles 4% on News of the Federal Reserve's Latest Rate Cut. Should Investors Be Concerned?

Core Viewpoint - The Federal Reserve's recent 25-basis-point interest rate cut has not positively impacted the cryptocurrency market, with Bitcoin experiencing a significant decline in value following the announcement [1][3]. Group 1: Market Reaction - Bitcoin has fallen approximately 4% in the 24 hours following the Fed's announcement [2]. - The decline in Bitcoin and other cryptocurrencies may be attributed to a "buy the rumor, sell the news" phenomenon, as the market had anticipated the rate cut [3]. Group 2: Federal Reserve Commentary - Federal Reserve Chair Jerome Powell indicated that another rate cut in the next meeting is not guaranteed, especially given the current government shutdown affecting data availability [4]. - The Fed's shift to a rate-cutting policy comes in response to rising inflation and recent weaknesses in U.S. employment trends [5]. Group 3: Future Outlook - The FOMC's vote to cut rates was 10 to 2, suggesting potential support for further cuts in December, contingent on upcoming economic data [6]. - Despite the rate cut being generally favorable for the crypto market, investor confidence regarding future cuts appears to be waning, leading to volatility in cryptocurrency valuations [7].