After the Fed’s 0.5% rate cut, Bitcoin price will try to turn the tide.
Bitcoin rose above $61,000 following the US Federal Reserve's decision to cut interest rates by 50 basis points. The Fed's decision to cut rates for the first time since 2020 is a long-anticipated move by crypto traders, with Bitcoin and the broader crypto market expected to benefit from the policy reversal.
Data from Cointelegraph Markets Pro and TradingView reacted to BTC's price action in response to the reduced decision, while the market awaited a complementary comment from Fed Chairman Jerome Powell.
BTC/USD 15 minute chart. Source: TradingView
The Federal Open Market Committee (FOMC) has chosen to take the aggressive step of cutting interest rates by half a point for the first time since the start of the Covid-19 pandemic in 2020 to avoid a slowdown in the labor market.
“The committee wants to achieve 2 percent higher employment and inflation in the long term,” he said in a press release.
Market participants had been eagerly anticipating the move, and according to data from CME Group's FedWatch Tool, a rate cut could already be 100%.
The following FOMC statement compares rates to those issued after the Fed's policy-making meeting on September 18 in July (text in red).
Comparison of July and September 18 FOMC statement. Source: CNBC
At the time of writing, Bitcoin is trading at $60,400 and traders will be closely dissecting Powell's post-FOMC press comments to predict when further rate cuts will be implemented.
Related: Why Bitcoin Price is Stuck
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
