Bitcoin, which started its run after the Fed cut interest rates by 50 basis points, attracted bulls as it surpassed $62k.
BTC rose above $61,000 for the first time after the Fed announcement, but the rally reversed within an hour. The top cryptocurrency’s increased volatility unsettled the market as it dropped below $60,000.
Its incredible surge then took it above $62,000. BTC, which surpassed $62,000 for the first time since August 27, gave hope for the bull run.
Fed Rate Decision Is Doping for Bitcoin
Positive activity was observed in the cryptocurrency after Fed Chairman Jerome Powell announced that he would cut interest rates by 50 basis points after four years of restrictive monetary policy. The Fed’s first rate cut since 2021 caused immediate volatility in financial markets. The decision is understood to be in line with other global central banks, such as the European Central Bank, which have cut interest rates this year.
Most crypto investors were expecting a 25 basis point rate cut. However, the Fed cut rates by 50 basis points. While the decision created confusion, its impact on cryptocurrencies seems to be positive for now. BTC surpassed $62,000 a few hours after the decision, giving hope to both the market and investors.
Bitcoin would signal bullishness if it breaks the $64,000-$65,000 range (2021 high) on volume. Staying above this zone could pave the way for new highs.
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