Originally published on: September 18, 2024
In a significant turn of events, Bitcoin made a strong comeback, exceeding the $61,000 mark after the United States Federal Reserve announced a 0.5% interest rate cut. This move, the first rate cut since 2020, has been eagerly awaited by cryptocurrency traders, who foresee positive implications for Bitcoin and the broader digital asset market.
Bitcoin’s Price Reaction to the Fed’s Decision
Following the rate cut decision, Bitcoin’s price swiftly surged, with data from Cointelegraph Markets Pro and TradingView closely tracking its price action. Market watchers were eager to hear insights from Fed Chair Jerome Powell, anticipating the ripple effects on Bitcoin.
Federal Reserve’s Aggressive Rate Cut
The Federal Open Market Committee (FOMC) made a bold move by decreasing interest rates by 0.5%, marking the first cut since the onset of the COVID-19 pandemic in 2020. The aim is to counteract a potential slowdown in the labor market and to achieve maximum employment and 2% inflation in the long run.
Investor Expectations and Market Predictions
Market participants were prepared for this move, with data from CME Group’s FedWatch Tool indicating a high probability of a rate cut between 0.25% to 0.50%. The announcement was compared to the FOMC’s previous statement in July when rates remained unchanged.
Implications for Bitcoin Investors
Currently, Bitcoin is priced at $60,400, and investors are eagerly awaiting Powell’s post-FOMC press conference for insights into potential future rate cuts. The information shared during this session will play a crucial role in guiding investment decisions in the cryptocurrency market.
Disclaimer:
It is essential to note that this article does not provide investment advice or recommendations. All trading and investment activities involve risks, and readers are encouraged to conduct thorough research before making any financial decisions.
