Bitcoin (BTC) experienced strong volatility on September 19, following the Fed's FOMC meeting, but still held its ground above the $60,000 mark.
Fed Chairman Jerome Powell confirmed weeks of speculation by announcing a 50 basis point interest rate cut after four years of strict monetary policy.
According to the press release:
“The Committee is more confident that inflation is moving sustainably toward 2 percent, and it judges that risks to achieving its maximum employment and inflation goals are roughly balanced.”
The move comes after a long period of Fed rate hikes to counter inflation through 2022 and 2023. The decision is in line with other global central banks, such as the European Central Bank, which has also cut rates this year in response to disinflationary pressures.
Bitcoin holds steady at $60,000
Bitcoin jumped above $61,000 following the announcement, but within an hour the trend reversed, pulling the price back below $60,000 before investors shored up the market.
Bitcoin price is trading in a narrow range, with support around $59,000 and resistance near $61,230. Despite the brief volatility following the FOMC announcement, Bitcoin has stabilized in a more sustainable area.
Important moving averages, including the 7-period moving average at $60,280.1 and the 99-period moving average at $60,075.3, suggest that market sentiment is cautious.
According to data from CoinMarketCap, the pioneer coin is trading at $60,469 as of press time, up 0.53% over the last 24 hours.
Despite the current reversal, analysts warn that similar volatility could continue in the coming days. Past patterns show that the cryptocurrency market often reacts strongly to macro news, but can face corrections as the market absorbs longer-term impacts.
Altcoins Struggling to Recover
Altcoins had a harder day than Bitcoin, with most falling and only recovering after the FOMC meeting.
Ethereum (ETH) traded below $2,300 for most of the day before attempting to recover following the Fed announcement. As of press time, ETH is trading at $2,337, down 0.16% over the past 24 hours.
Binance Coin (BNB) fared slightly better, up 0.88% on the day and currently trading at $550.05. Meanwhile, Solana (SOL) has recovered and is up 0.19% at $131.60.
XRP is down 0.60% over the period and is currently priced at $0.581, while Dogecoin is trading at $0.1024, up 1.45%.
Toncoin recorded a notable increase of 2.12% to $5.63, while Tron (TRX) decreased by 0.54% and is currently priced at $0.1492. At the bottom of the top 10 list, Cardano (ADA) increased slightly by 1.26% to $0.3375, while Avalanche (AVAX) decreased by 0.01% to trade at $23.86.
