The Federal Reserve has implemented a 25 basis point interest rate cut, bringing the target range down to 4-4.25%. This decision was largely supported by Governor Christopher Waller and other members of the FOMC, who cited the need for economic stimulus in light of shifting risk conditions. Market reactions are expected, potentially impacting risk assets like cryptocurrencies, which might experience increased volatility. 25 basis point rate cuts during the mid-pandemic period previously led to liquidity increases and boosted market rallies. Bitcoin (BTC) has seen a decrease in market dominance today, currently trading at $111,315.44 with a market cap of $2.22 trillion. The recent shift in economic conditions is likely contributing to this volatility. Coincu research predicts increased crypto market volatility tied to this rate cut, due to Bitcoin’s connection to high-beta assets and its susceptibility to fluctuations. This information is for general market commentary and does not constitute investment advice.