The Federal Reserve announced a 50 basis point cut in borrowing costs, the first rate cut in more than four years.
However, Fed Chairman Powell was careful not to make a clear commitment to the pace of future rate cuts, saying that future rate cut decisions will be based on economic data.
This cautious outlook dampened market reactions during Wednesday's U.S. trading session.
Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for digital asset derivatives trading, noted: "The positive start of the easing cycle is good news for risk assets such as Bitcoin.
The market needs a few hours to assess the situation and gradually reflect the improvement in the outlook."
Before the Fed meeting, there was a disagreement on whether officials would choose to raise interest rates by 25 basis points or 50 basis points.
Powell and his colleagues are working to maintain strong growth in the U.S. economy amid a more balanced labor market and inflation risks.
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