Bitcoin price surged above $61,000 after the US Federal Reserve cut interest rates by 50 basis points for the first time since 2020.
Bitcoin surged above $61,000 following the US Federal Reserve’s decision to cut interest rates by 50 basis points. The Fed’s decision to cut interest rates for the first time since 2020 was a move long anticipated by crypto traders, with most predicting that Bitcoin and the broader crypto market would benefit from the policy reversal.
Data from TradingView tracks Bitcoin’s price action as it reacts to the rate cut decision even as markets await accompanying comments from Fed Chairman Jerome Powell.
The Federal Open Market Committee (FOMC) opted to take an aggressive step by cutting interest rates by half a point, the first since the early days of the COVID-19 pandemic in 2020, in an effort to stem the deterioration in the labor market.
“The Committee seeks to achieve maximum employment and inflation at 2 percent over the longer term,” a press release said.
Market participants are highly anticipating the move, and according to data from CME Group's FedWatch Tool, the majority of investors believe a rate cut of 0.25% to 0.50% is 100% likely.
Here is a comparison of the FOMC statement on September 18 with the statement released after the Fed's previous policymaking meeting in July (in red) when interest rates were held steady.
At the time of writing, Bitcoin is trading at $60,400 and traders will be closely analyzing Powell’s post-FOMC press comments to make an estimate of when additional rate cuts could be made.
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The articleBitcoin Price Soars After Fed Cuts Interest Rates By 0.5% appeared first on CoinMoi .
