The Fed is about to announce a 2-digit interest rate cut, and Bitcoin soared past 62,000 this morning
Early this morning (19th) Taiwan time, the U.S. Federal Reserve (Fed) announced an interest rate cut of 2 percentage points (50 basis points), lowering the target range of the federal funds rate to between 4.75% and 5%, marking the first time since the early days of the COVID-19 epidemic in 2020 The first interest rate cut since the outbreak was also a proactive measure taken by the Federal Reserve to prevent a slowdown in the labor market. Outsiders estimate that the American League may cut interest rates by another 2 percent by the end of 2024.
After the interest rate cut, Bitcoin first rose and then fell following the U.S. stock market, but turned higher at 6 a.m. today (9/19). It soared above US$62,000 in early trading and is currently quoted at US$62,255.
According to foreign media "CNET", Federal Reserve Chairman Jerome Powell said at the press conference after the meeting that he is still optimistic about the U.S. economic prospects. The decision to cut interest rates will have a direct impact on consumers, with lower financing costs for consumer products such as credit cards and loans, but more rate cuts may be needed to feel significant relief.
For those looking to buy a home, mortgage rates have already begun to fall as the market has long anticipated this rate cut. With more rate cuts likely through 2025, mortgage rates are likely to fall further.
However, savings rates also fell ahead of the meeting. While some savings accounts and CDs may still earn annualized returns in excess of 5%, rates are expected to continue falling this year.
Source: Youtube The US Federal Reserve announced a 2-digit interest rate cut
After the interest rate cut, what do analysts think of the market outlook?
Analyst Edris Derakhshi pointed out that judging from the daily trend, Bitcoin finally broke through the $60,000 resistance level after rebounding from $52,000, and the relative strength index (RSI) was also above 50, indicating that the market momentum is biased towards the bullish side.
However, to start a new long-term rally, it should first break above the 200-day EMA, which is resistance near $64,000.
Source: buybitcoinworldwide Bitcoin 200-day moving average trend
While the 4-hour chart shows that the market has been making higher highs and lows since bouncing off the $52,000 support. Bitcoin is poised to climb towards $64,000 after breaking above the 60,000 mark, while the 4-hour RSI is also showing bullish momentum and has not yet reached overbought territory.
Another analyst, Titan of Crypto, emphasized that judging from the monthly trend, the 38.2% Fibonacci retracement point of Bitcoin (approximately $56,000) is a key support, saying that the market is still far from losing this support and is bullish. Kinetic energy remains intact.
With the Federal Reserve cutting interest rates, investors expect the Bitcoin market to start new momentum. The important resistance level near $64,000 in the future deserves close attention.
Source: X Titan of Crypto analyzes Bitcoin monthly trend chart
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice. The analysts’ views are for reference only. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
