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Bitcoin sought to flip $62,000 to support on Sept. 19 as markets digested a rare 0.5% interest rate cut by the United States Federal Reserve.
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 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920945-6aa3-7c6a-abfb-ac009f1681a3">
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 BTC/USD 4-hour chart. Source: TradingView
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<h2 id="btc-price-sees-three-week-highs-as-fed-cuts-big">BTC price sees three-week highs as Fed cuts big</h2>
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 continued Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) price strength during the Asia trading session.
Local highs of $62,600 followed the Fed’s move, which was only the third time in history that a rate-cutting cycle had <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/https-www-cnbc-com-2024-09-18-fed-meeting-live-updates-traders-await-september-interest-rate-cut-html" rel="" target="_self" text="null" title="https://cointelegraph.com/news/https-www-cnbc-com-2024-09-18-fed-meeting-live-updates-traders-await-september-interest-rate-cut-html">begun with a&nbsp;0.5% reduction</a>.
These, in turn, liquidated short BTC positions across exchange order books. Data from monitoring resource <a data-ct-non-breakable="null" href="https://www.coinglass.com/LiquidationData" rel="null" target="null" text="null" title="null">CoinGlass</a> put the total for the 24 hours to the time of writing at $128 million.
“Now we need to reduce leverage or take profits,” it <a data-ct-non-breakable="null" href="https://x.com/coinglass_com/status/1836569775209955685" rel="null" target="null" text="null" title="null">told</a> followers on X in a subsequent analysis, warning them not to “get carried away.”
<figure>
 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0192093f-1d6d-7b51-88ce-f4e2c7e203d0">
 <figcaption style="text-align: center;">
 BTC liquidation heatmap (screenshot). Source: CoinGlass
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Previously, Cointelegraph reported on a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-can-see-64k-very-quickly-fed-rate-cut" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-price-can-see-64k-very-quickly-fed-rate-cut">BTC price prediction calling for $64,000</a> in the event of a 0.5% cut, which ultimately proved too much for bulls to muster as significant resistance lingered overhead.
“Bitcoin slowly eating its way through the resistance level,” popular trader Jelle <a data-ct-non-breakable="null" href="https://x.com/CryptoJelleNL/status/1836660450303320224" rel="null" target="null" text="null" title="null">reported</a> on X.
<blockquote>
 “Above $62,500, things will look a lot more constructive, and stops above $65,000 won’t be safe anymore. Going to be an interesting end to September.”
</blockquote>
<figure>
 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920940-017b-7927-b5c1-9e6890202aea">
 <figcaption style="text-align: center;">
 US Dollar Index (DXY) 1-hour chart. Source: TradingView
 </figcaption>
</figure>
The US dollar saw volatile conditions, meanwhile, with the US Dollar Index (DXY) initially also rising before giving up its gains to return to prior support.
“Sitting at the edge of support. Breakdown can result in a sharp move towards 96,” popular trader Aksel Kibar <a data-ct-non-breakable="null" href="https://x.com/TechCharts/status/1836659018191769933" rel="null" target="null" text="null" title="null">responded</a> in his latest DXY analysis on X.
<figure>
 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920940-78c5-79ed-8d07-b4d66724c276">
 <figcaption style="text-align: center;">
 US Dollar Index (DXY) 1-month chart. Source: Aksel Kibar/X
 </figcaption>
</figure>
For Arthur Hayes, former CEO of crypto exchange BitMEX, attention was now on the Bank of Japan’s own rates decision due on Sept. 20.
The strength of the yen would, in turn, influence BTC price performance, he suggested.
<figure>
 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920941-1d40-7390-85a8-d0e77e468941">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/CryptoHayes/status/1836616295481250084%C2%A0" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/CryptoHayes/status/1836616295481250084&nbsp;">Arthur Hayes</a>
 </figcaption>
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<h2 id="something-doesn-t-add-up">“Something doesn’t add up”</h2>
Zooming out, however, trading resource The Kobeissi Letter had a clear warning for risk-asset traders.
Related:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/markets-see-0-5-fed-rate-cut-5-things-bitcoin-this-week" rel="null" target="null" text="null" title="Markets see 0.5% Fed rate cut — 5 Things to know in Bitcoin this week">Markets see 0.5% Fed rate cut — 5 Things to know in Bitcoin this week</a>
While seemingly boosting liquidity, rate-cutting cycles beginning with a 0.5% decrease ultimately result in losses for US equities.
“In 2001, the market fell 31% after 2 years and in 2007 the market fell 26% after 2 years. These were major crises,” part of an X thread <a data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1836552447768301648" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/KobeissiLetter/status/1836552447768301648">recalled</a>.
Kobeissi contrasted the Fed’s upbeat message with the scale of its policy dial-back, suggesting a contradiction in play.
“If the Fed has only started with 50 basis point rate cuts during crises, why start with 50 bps this time?” it queried.
<blockquote>
 “The Fed continues to say the economy is strong and they are calling for a soft landing. But policy decisions are as if we are in a crisis. Something doesn’t add up here.”
</blockquote>
<figure>
 <img alt="Bitcoin price hits $62.6K as Fed ‘crisis’ move sparks US stocks warning" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01920941-cf95-7c9c-8b16-b81dbaab055c">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
 </figcaption>
</figure>
Data from CME Group’s <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">FedWatch Tool</a> showed odds of another 0.5% cut being less likely than a smaller 0.25% follow-up at the Fed’s next meeting on Nov. 7.
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 hits $62.6K as Fed ‘crisis’ move sparks US stocks warning

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