Bitcoin price surges to $61k after Federal Reserve rate cut, sparking optimism.

From Investing.com

September 19, 2024 02:03:44 AM:

Bitcoin’s price surged after the Federal Reserve cut interest rates and indicated the start of an easing cycle. The token reached $61,985 and broke out of its $50,000 to $60,000 trading range. However, gains were tempered by a less dovish Fed outlook.

The Fed’s rate cut sparked optimism in risk driven assets, including cryptocurrencies. While concerns lingered about the fragility of the U.S. economy, Federal Reserve Chair Jerome Powell balanced worries by stating that risks were evenly balanced between inflation and the labor market.

Powell’s comments on rates in the medium-to-long term boosted the dollar as lower rates could support high-risk assets like crypto. However, ultra-low rates seen during the pandemic are unlikely, impacting the industry’s growth. Regulatory crackdowns and fading retail interest have dampened the market’s earlier momentum.

Altcoins also saw a rise in prices as they followed Bitcoin’s upward movement driven by improved risk appetite. Ethereum, Cardano, XRP, and Dogecoin experienced gains ranging from 0.4% to 5.7%, while meme token Shiba Inu increased by 3.3%.

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