Ahead of the US Federal Reserve's decision to cut interest rates tomorrow (September 19, 2024), the Bitcoin market has experienced significant volatility. Currently, Bitcoin price is fluctuating around $60,000-61,000, with many investors expecting the Fed to cut interest rates by 0.5 percentage points. This has pushed Bitcoin price up slightly as expectations of higher liquidity support risk assets such as cryptocurrencies.
However, market sentiment is also quite cautious, due to the possibility of "sell the news" after the interest rate cut announcement. If the Fed cuts by 50 basis points, it could create concerns about an economic recession, leading to selling pressure on risk assets, including Bitcoin (TradingView).
Overall, the uncertainty around the specific cut size is increasing Bitcoin’s volatility, and the market’s reaction will largely depend on the accompanying policy message from the Fed.
