The Fed Slashed Rates. Here’s Why Crypto Prices Tumbled Anyway

The U.S. Federal Reserve announced a 25-basis-point rate cut on Wednesday, but crypto prices still slumped.

A lower federal funds rate makes borrowing costs more affordable, stimulating financial activity. Rate cut announcements typically boost the prices of riskier assets.

Neither crypto nor equities followed that script on Wednesday, however. A potential reason? In a speech following the announcement, Fed Chair Jerome Powell struck a more inflation-hawkish tone than expected when discussing…