Bitcoin Jumps 6% After Fed Cuts Rates By 50 Basis Points
Key receivers
The Fed's rate cut will increase Bitcoin by 6%, but the BOJ's decision may affect profits. Bitcoin may benefit from further Fed rate cuts expected by the end of the year.
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Bitcoin is trading near $63,000, up 6 percent in the 24 hours since the Federal Reserve decided to cut its benchmark interest rate by 50 basis points. This move boosted the entire crypto market, with the overall market volume rising 2% in response.
The devaluation is often seen as a boon for hard assets like Bitcoin, which benefit from inflation. However, the rate cut appears to be a response to growing economic concerns. Despite this, the market's response shows the optimism among investors.
The Fed's decision to cut interest rates by half a percentage point was seen as a defensive move against a possible slowdown in the labor market. While many investors expected some degree of easing, expectations were mixed, with some predicting a smaller 25-basis-point cut.
Looking ahead, further tapering is expected, with CME Group's FedWatch tool suggesting further easing by the end of the year.
Although September has historically been Bitcoin's worst performing month, it is up 7% this time. However, caution will continue as the market turns its attention to the Bank of Japan's future policy meeting, which could have a significant impact on Bitcoin futures.
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