Bitcoin Surpasses $62,000 Following U.S. Fed's 'Big Cut'

The US Federal Reserve announced a 50bp cut in the benchmark interest rate.
BTC Breaks $62K After Roller Coaster Ride
Altcoins, BTC Rising, Fully Rising
Expert: "BTC Enters Bull Market Following Interest Rate Cut"

Bitcoin (BTC) broke through $62,000 as the U.S. Federal Reserve (Fed) implemented a 'big cut' of 50bp lowering the benchmark interest rate from 5.25-5.50% to 4.75-5.00%.

The Federal Reserve announced on the 18th (local time) that it would cut interest rates by about 100bp this year along with the big cut after the Federal Open Market Committee (FOMC) meeting. Bitcoin immediately soared after the Fed announced the rate cut, breaking through $61,000, but then fell for a while due to recession concerns that hit the asset market.

But Bitcoin soon began to rise, surpassing $62,000 in about a month.

Altcoins also recorded an average increase of over 1% as Bitcoin rose. It is assessed that the interest rate cut, which took place for the first time in about 4 and a half years since COVID, led to the upward trend in the cryptocurrency market.

◇Bitcoin = As of 5 PM on the 19th, the Bitcoin price on Upbit was 82.95 million won. Bitcoin’s market share (dominance) was 58.31%.

Bitcoin rebounds amid concerns over Fed rate cut, experts predict bull market for the currency

On-chain analyst Willy Wu said, “Currently, supply and demand are neutrally weak, but there is a possibility that liquidation will occur in the future, which will turn bullish.” He added, “However, there is also a possibility that all markets will crash in the short term due to the worsening macroeconomic situation, and then enter a recovery rally.”

Cryptocurrency trading firm QCP Capital added, "Volatility may increase for a few days after the FOMC as investors readjust their positions," but "positive changes in the market are expected once the full-scale rate cut cycle begins."

◇Rising Coin = As of 5 PM on the 19th, based on Upbit, the cryptocurrency with the largest increase compared to the previous trading day was Kava (KAVA), rising by approximately 26%.

KAVA is a decentralized DeFi finance platform built on Cosmos and running its own mainnet. It is a decentralized blockchain that combines the speed and interoperability of Cosmos with the developer power of Ethereum.

As a DeFi platform, we deposited other cryptocurrencies into the platform, issued USDX, a stablecoin, and built a CDP (Collateralized Debt Position) that can leverage existing assets.

Kava is used on the platform to stabilize the network, collect fees for usage, and participate in governance.

◇Fear and Greed Index = The cryptocurrency fear and greed index provided by Alternative has entered the 'Neutral' stage at 49 points. The neutral stage is a section where psychological resistance and support from market participants appear, and important decision-making actions occur in future price movements.

Reporter Kwon Seung-won ksw@