Fed Cuts Interest Rates, Bitcoin Surges Above $60,000
The Federal Reserve has cut interest rates by 50 basis points, bringing the federal funds rate to a range of 4.75%-5.00%. This decision, aimed at addressing inflation concerns, sparked immediate reactions in the financial markets. Bitcoin's price surged to $60,558 shortly after the announcement, reflecting the crypto market's sensitivity to monetary policy changes. Analysts expect short-term volatility but remain optimistic about Bitcoin's long-term potential gains.
U.S. stock markets also responded positively, with indices like the S&P 500 and Nasdaq Composite experiencing modest gains. However, the CBOE Volatility Index (VIX) rose by 4.4%, indicating that investors are preparing for possible market turbulence in the near future. The Fed acknowledged solid economic growth but warned that inflation remains elevated, suggesting that market uncertainty may persist.