Bitcoin Price Hits $62.6K, Fed’s ‘Crisis’ Moves Cause US Stocks to Be Alert

Bitcoin attempted to flip $62,000 as support on September 19, as markets digested the Federal Reserve’s unprecedented 0.5% interest rate cut.

BTC price hits 3-week high as Federal Reserve slashes interest rates

Data from Cointelegraph Markets Pro and TradingView shows that the Bitcoin (BTC) price continues to strengthen during the Asian trading session.

The Fed’s action pushed the local record high to $62,600, marking only the third time in history that a 0.5% cut has started a rate-cutting cycle.

This, in turn, liquidated short BTC positions across exchange order books, totaling $128 million over the 24 hours to date, according to data from monitoring resource CoinGlass.

“Now we need to either reduce leverage or take profits,” he told X’s followers in a follow-up analysis, warning them not to “get too excited.”

Previously, Cointelegraph reported a BTC price prediction that a 0.5% cut would see the price hit $64,000, which ultimately proved to be too steep a drop for the bulls to recover from, with significant resistance remaining overhead.

Popular trader Jelle reports on X that “Bitcoin is slowly breaking through resistance levels.”

“Above $62,500, things will look much more constructive, and the stop above $65,000 will no longer be safe. It will be an interesting end to September.”

Meanwhile, the US dollar showed volatility, with the US Dollar Index (DXY) initially rising but then gave up its advance and returned to its previous support level.

“It’s sitting on the edge of support. The breakdown could be a sharp move towards 96,” popular trader Aksel Kibar responded in his latest DXY analysis for X.

Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, now has his sights set on the Bank of Japan’s interest rate decision scheduled for September 20.

He said that the strengthening of the yen will affect BTC price performance.

“Something is not right”

But looking a little further, the trading document, the Kobeishi Letter, contained a clear warning to risky asset traders.

relevant: Markets Confirm 0.5% Fed Rate Cut. 5 Things to Know About Bitcoin This Week

While seemingly increasing liquidity, a rate cut cycle that starts with a 0.5% cut ultimately hurts U.S. stocks.

“In 2001, the market fell 31% in two years, and in 2007, it fell 26% in two years. Those were major crises,” one person on the X thread recalled.

Kobeishi contrasted the Fed’s optimistic message with the scale of its policy easing, suggesting a contradiction.

“If the Fed started with a 50bp cut only during a crisis, why did it start with 50bp this time?” he asked.

“The Fed keeps saying the economy is strong and calling for a soft landing, but the policy decisions make it seem like we’re in a crisis. Something is not right here.”

Data from CME Group’s FedWatch tool showed that a 0.5% rate cut is less likely at the Fed’s next meeting on November 7 than a 0.25% cut.

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.