Bitcoin Price Seeks to Reverse Downtrend Following Federal Reserve’s Half-Percentage Point Rate Reduction — TradingView Reports

Following a significant decision by the United States Federal Reserve to slash interest rates by 50 basis points, Bitcoin surged past the $61,000 mark. This rate reduction, the first since 2020, had been anticipated by enthusiasts within the cryptocurrency space for some time. The consensus in the crypto community is that Bitcoin, along with the broader digital currency market, stands to gain from this shift in monetary policy.

Observations from Cointelegraph Markets Pro and TradingView tracked the response of Bitcoin’s price to the interest rate drop, noting the market’s reaction as traders eagerly awaited further details from Fed Chair Jerome Powell’s remarks.

Demonstrating a proactive stance, the Federal Open Market Committee (FOMC) opted for a robust half-point rate cut, a decision reminiscent of the early pandemic days in 2020, aimed at propping up a waning labor market.

In an official statement, the Committee expressed its goal to accomplish maximum employment and stabilize inflation at a 2 percent target over the extended term.

Market analysts had largely predicted the Fed’s move, with projections from the CME Group’s FedWatch Tool indicating that most investors believed a rate cut between 0.25% to 0.50% was a certainty.

Highlighted below is a side-by-side analysis of the FOMC’s latest statement on Sept. 18 and the previous announcement made during their July meeting (when rates were maintained), with changes marked in red.

At present, Bitcoin is valued at $60,400. Traders are meticulously analyzing Powell’s comments post-FOMC meeting to speculate on the timing of potential future rate reductions.

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