Federal Reserve Rate Cut Sparks Mixed Bitcoin Market Reactions

Despite the Federal Reserve's recent quarter-point rate cut, Bitcoin's price has not rallied as expected, with odds of surpassing $125,000 remaining low and the cryptocurrency actually declining by over 4% to below $113,000. Eric Trump, EVP of The Trump Organization, had predicted the rate cut would cause crypto prices to skyrocket, but market data shows continued hesitation among investors and a bearish technical outlook for Bitcoin, including signals of potential downside risk below key support levels. The U.S. dollar also showed resilience with a bullish reversal pattern after the Fed's move, typically correlating with weakness in risk assets like Bitcoin. Meanwhile, XRP is approaching its maximum supply much sooner than Bitcoin, with transaction fees being burned to create a deflationary effect that could induce a supply shock, potentially supporting its price if demand remains stable or grows. This contrasts with Bitcoin's issuance schedule, which extends until 2140, highlighting differing scarcity dynamics between the two cryptocurrencies. Overall, market sentiments remain cautious with mixed technical signals and supply factors influencing the outlook for major cryptocurrencies.