Question #193 ·
How did the Federal Reserve’s rate cut on October 29 influence Bitcoin’s price movement?
- The Federal Reserve’s rate cut triggered a brief Bitcoin price decline of approximately three percent pushing the market below one hundred eleven thousand dollars due to uncertainty over future rate cuts before prices recovered near that level Right answer
- The Federal Reserve did not change its rate policy on October twenty ninth so Bitcoin remained largely unaffected with no significant price movement contradicting the three percent drop and subsequent trading just above one hundred eleven thousand
- The Federal Reserve’s rate cut caused Bitcoin to skyrocket by five percent immediately after the announcement as traders anticipated more accommodative monetary policy although this interpretation misreads the actual three percent drop that followed Chair’s cautious statements
Why is this the correct answer?
This is correct because on October 29, Bitcoin dropped about three percent and briefly dipped under $111,000 after the Fed’s rate cut announcement, as traders reacted to Chair Powell’s comments about uncertain further cuts, then the price stabilized around that threshold.