Bitcoin saw its value soar to $61,331 on Tuesday, just a day before members of the U.S. Federal Reserve meet to discuss a possible cut to the federal funds rate. While BTC rose 5%, the stock market showed mixed signals, hovering near its previous high, and gold fell more than half a percent on the day.
Bitcoin Hits $61,000 as Fed Rate Cut Leaves Investors Divided
While the benchmark indexes hit record highs in the morning, stocks turned a bit choppy as the afternoon wore on. Of the major players—the Russell 2000, S&P 500, Dow Jones and Nasdaq—only the Russell 2000 and Nasdaq were up slightly as of 3 p.m. ET on Tuesday. These moves on Wall Street come ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting on Wednesday.
At this point, the CME Fedwatch tool is pegging a 37% chance of a 25 basis point (bps) rate cut, while the odds of a more substantial 50bps cut are at 63%. With numbers that close, that would be a real coup. On Polymarket, bettors are pricing in a 44% chance of a smaller cut and a 55% chance of a larger cut. The odds of a 75bps cut, meanwhile, are pegged at just 1%.
Gold lost some of its luster on Tuesday, slipping 0.58% to around $2,567 an ounce. Silver followed suit, albeit with a smaller 0.28% drop, currently trading at $30.62 an ounce. After hitting an intraday high of $61,207, bitcoin slipped below $61,000 at 3:45 p.m. ET. As of this writing, the leading cryptocurrency was trading at $60,338, with a market capitalization hovering around $1.19 trillion. By 3:50 p.m., BTC was once again below $60,000 at $59,976 per coin.
What do you think about the market action on Tuesday, the day before the FOMC meeting? Share your thoughts and opinions on this topic in the comments section below.
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