Bitcoin rises to $61,000 after Fed’s 0.5% rate cut
Bitcoin (CRYPTO:BTC) rallied to $61,000 after the United States Federal Reserve’s decision to cut interest rates by 50 basis points, marking the first rate cut since 2020.
This rate reduction, anticipated by many in the cryptocurrency market, sparked optimism among traders who expect Bitcoin and the broader cryptocurrency market to benefit from the policy change.
The Federal Open Market Committee (FOMC) took this aggressive step to cut interest rates by half a point to counteract a potential slowdown in the labor market.
The rate cut, which surprised some market participants, is a significant policy reversal by the Fed after years of tightening monetary policy.
The FOMC’s statement emphasized, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run."
According to data from TradingView, Bitcoin’s price surged as investors reacted to the Fed’s decision.
Many market participants had already priced in the possibility of a rate cut, with predictions ranging from 0.25% to 0.50%, and the resulting boost in Bitcoin’s value was seen as a positive outcome by traders.
This rate cut marks the first significant monetary policy shift by the Fed since the early days of the COVID-19 pandemic in 2020.
Market participants have speculated that the crypto market may gain further momentum as traditional markets adjust to the changing interest rate environment.
Crypto enthusiasts have long argued that lower interest rates, alongside growing inflation concerns, could drive more investors into Bitcoin as a hedge against fiat currency devaluation.
The cryptocurrency market, led by Bitcoin, may continue to experience heightened volatility as the global financial landscape adjusts to this latest policy shift.
With Bitcoin now firmly above $61,000, the rate cut could fuel further market activity in the coming weeks.
At press time, the Bitcoin (BTC) price was $61,626.21.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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