The Federal Reserve announced a 25 basis point interest rate cut as predicted by many crypto analysts. This move follows the September FOMC meeting and is expected to trigger further cuts in the coming months. Analysts cite expanding DeFi applications and increasing institutional investment as drivers behind this rise, but the market reacted with bearish sentiment. Following high anticipation of the FOMC decision, the cryptocurrency market reacted with a decline. Notably, crypto analysts predict more rate cuts based on Fed Chair Jerome Powell’s earlier statements. 25 basis points were indeed cut, which many predicted. A prominent crypto trader and analyst, Lark Davis, also noted the expected reaction. He highlighted that the actual change was not surprising as the market already anticipated this move. The real catalyst in the market’s reaction is the end of Quantitative Tightening (QT) on December 1st, which is generating increased expectations for quantitative easing (QE) to begin by year-end. Expert Doctor Profit also expressed his belief that the market’s reaction was predictable, as QT ending was already factored into current price expectations. The expected shift from QT to QE could signal fresh liquidity entering the market. This development has been noted by cryptocurrency enthusiasts and analysts like Lark Davis, who predict a bullish effect on assets like Bitcoin (BTC) and altcoins. A potential surge in crypto prices is anticipated as capital flows from non-risk assets like gold and silver to riskier alternatives such as Bitcoin. The combination of rate cuts, the end of QT, and expected QE could lead to renewed growth in the cryptocurrency market.