Bitcoin has broken through $61,000 after the U.S. Federal Reserve decided to cut interest rates by 50 basis points. The decision by the Federal Reserve to cut rates for the first time since 2020 was a move long-anticipated by crypto traders, with most expecting Bitcoin and the broader crypto market to benefit from the policy reversal.
Data from Cointelegraph Markets Pro and TradingView tracked Bitcoin (BTC) price movements as markets reacted to the rate cut decision while awaiting comments from Federal Reserve Chair Jerome Powell.
BTC/USD 15-minute chart. Source: TradingView
The Federal Open Market Committee (FOMC) took aggressive action to stem the labor market slowdown by cutting interest rates by half a percentage point for the first time since the early days of the COVID-19 pandemic in 2020.
According to the press release, “The Committee aims to achieve maximum employment and inflation of 2 percent in the long run.”
Market participants had been largely anticipating the move, with most investors believing a rate cut of 0.25% to 0.50% was 100% possible, according to CME Group’s FedWatch tool.
Below is a comparison of the September 18 FOMC statement with the statement (in red) issued after the Fed’s previous policy meeting in July, when it held rates steady.
Comparison of the July and September 18 FOMC statements. Source: CNBC
At the time of writing, Bitcoin is trading at $60,400, and traders will be closely analyzing Chairman Powell’s comments following the FOMC press conference to gauge when additional rate cuts might be coming.
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This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.