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Bitcoin rallied above $61,000 following the United States Federal Reserve’s decision to cut interest rates by 50 basis points. The Fed’s decision to cut rates for the first time since 2020 is a move long predicted by crypto traders, and most anticipate Bitcoin and the wider cryptocurrency market to benefit from the policy reversal.
Data from <a data-ct-non-breakable="null" href="https://pro.cointelegraph.com/?via=markets&amp;_ga=2.173325223.503936973.1685953699-1136475544.1627545224" rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a> followed Bitcoin’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) price action as it reacted to the rate cut decision even as the market awaited accompanying commentary from Fed Chair Jerome Powell.
<figure>
 <img alt="Bitcoin price attempts to turn the tide after Fed’s 0.5% rate cut" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920674-7249-7ff2-b9ff-f4bf85e94dab">
 <figcaption style="text-align: center;">
 BTC/USD 15-minute chart. Source: TradingView
 </figcaption>
</figure>
The Federal Open Market Committee (FOMC) opted to take an aggressive step by cutting interest rates by half a point, the first since the early days of the COVID-19 pandemic in 2020, in an effort to head off a slowdown in the labor market.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” a press release <a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="nofollow noopener" target="_blank" text="null" title="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">stated</a>.
Market participants highly anticipated the move, and according to&nbsp;<a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="null" target="null" text="null" title="null">data</a>&nbsp;from CME Group’s FedWatch Tool, the bulk of investors believed a 0.25% to 0.50% rate cut was 100% probable.
The following is a comparison of FOMC’s statement on Sept. 18 with the one issued after the Fed’s previous policymaking meeting in July (text in red) when the rates were left unchanged.
<figure>
 <img alt="Bitcoin price attempts to turn the tide after Fed’s 0.5% rate cut" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920675-1154-7531-a6e9-a7e50d2b64f9">
 <figcaption style="text-align: center;">
 Comparison of July and Sept. 18 FOMC statement. Source: CNBC&nbsp;
 </figcaption>
</figure>
At the time of writing, Bitcoin price is trading at $60,400, and traders will closely disssect Powell’s post-FOMC presser comments to make estimates on when additional rate cuts could be implemented.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/why-is-bitcoin-price-stuck" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/news/why-is-bitcoin-price-stuck">Why Bitcoin price is stuck</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price attempts to turn the tide after Fed’s 0.5% rate cut

Cointelegraph

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