The U.S. Federal Reserve reduced benchmark interest rates by 25 basis points to a range of 4.25%-4.50%. Following this, Bitcoin’s price fell over 1% to approximately 103,729 USD, despite a significant surge of over 70% since September.

Market analysts warn that inflation concerns may lead the Fed to adopt a hawkish stance in 2025, with no rate cuts expected until mid-2026. Only two rate cuts are anticipated in 2025, posing potential risks for Bitcoin’s value.