Bitcoin On the Radar As Fed Cuts Interest Rate By 0.5%

The US Federal Reserve has trimmed interest rates by 50 basis points, causing the price of Bitcoin to breach $60,000 resistance

Bitcoin (BTC) price is in the spotlight as the United States Federal Reserve finally decided to implement a 50-basis-point Interest rate cut. This is the bank’s first rate cut in the last four years. 

Bitcoin Price Reacts to 50 Bps Interest Rate Cut

In the wake of this news, Bitcoin has seen a price rally above $60,000, sparking some excitement in the crypto community. As of this writing, the coin traded at $60,670.82, corresponding to a 0.14% increase in the last 24 hours. 

Similarly, its market cap has seen a 0.13. Bitcoin trading volume is at $34.7 billion, reflecting a 2.55% downturn in the last 24 hours.

Market observers and experts sincerely hoped Bitcoin would finally get a price boost if the Fed implemented a rate cut. Bitcoin investor and entrepreneur Lark Davis noted that he anticipates a sharp rise in the price of BTC should the Central Bank go through with the rate cut. He sees BTC experiencing parabolic price growth and a rapid upward trend. 

As was expected of the cryptocurrency in June, Davis is optimistic that Bitcoin will hit $100,000. The recent surge past $60,000 indicates that the leading crypto might gain additional trigger toward retesting its past All-Time high (ATH) of over $73,000.

End of Interest Rate Cut Speculations 

For the last few months, Americans have been left guessing about the size of the much-anticipated interest rate cut. 

There were speculations that it would either be a 25-basis-point or a 50-basis-point. This reflects the level of uncertainty surrounding the decision. Several entities have staked as much as $50 million on the Federal Reserve interest rate cut on Polymarket, the popular crypto-based prediction market. Earlier this week, the odds of a 50 bps surged sharply, exceeding 50%.

Following this 0.5% rate cut, the slash is expected in November, and US futures are already pricing in a 64% chance of a 25-basis point cut.

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