- Fed rate cut announced by 25 bps, as many expected.
- Powell reveals sad economy under Trump’s reign.
- The crypto market is yet to react, will it go bullish or bearish?
The highly anticipated FOMC meeting of September finally took place, with the Fed rate cuts announced by 25 bps. The Fed Chair Jerome Powell reveals a sad economy following Trump’s presidency. While the crypto market is yet to react to the aftermath of the FOMC meeting, some believe the announcement is already priced in and that the crypto market will either go bullish or bearish in reaction soon.
Fed Rate Cuts Announced by 25 bps
The FOMC meeting of September 2025 was a highly anticipated one as the criteria finally lined up for Powell to announce a rate cut. However, the depth of the cut remained ambiguous. While President Trump demanded a 3-point rate cut, Powell refused to cut rates until all their criteria was met. This led to Trump’s frustration and outrage at Powell for making it harder to reduce the US debt.
Instead, Powell hinted that there would be a rate cut in September. However, he made it clear that a deep cut as Trump was hoping for would be highly unlikely. He then said that rate cuts would come if needed, but would be spaced out and announced if necessary. Moreover, these cuts would be small and dispersed depending on the state of the country and the many variables that determine the need for a rate cut.
The post above shows how Fed Chair, Jerome Powell, just announced that the economy under President Donald J. Trump has led to fewer job gains, higher unemployment, higher inflation, and a lower GDP than under the Biden administration, which is 1.5% down from 2.5% last year. This, the post goes on to state, is a huge embarrassment for Trump and his administration.
Before the official announcement came through, a member of the crypto community made a prediction. As we can see from the post above, this popular crypto enthusiast predicted that if the FED cuts rates by 25 bps, markets will dump after the event because 25 is already priced in. From there, US stocks dump, taking crypto with it. The crypto market will dump towards the end of September, and everyone will get bearish.
This bearish sentiment, he believes, will take the price of BTC close to $100,000 and the price of ETH to $3,800. Then, market makers will liquidate all the longs until everyone becomes bearish and the market bounces back in early October. Following this, Bitcoin hits a new ATH of $150,000k and possibly above between October and November, and ETH follows it to $7,500 to $10,000 ATH targets.
Finally, he predicts BTC dominance will drop, allowing money to start flowing into altcoins, and the market ushers in 2-3 months of a mega altseason where several promising altcoins will pull pumps between 10x and 50x. This could be reminiscent of the Q4 parabolic pumps of 2017 and 2021, bringing the crypto markets to explode with back-to-back rate cuts until Q1 2026. Time will tell if this prediction plays out.
