Fed Cuts 50 Basis Points Marking the Beginning of a New Cycle

The United States (US) central bank, the Federal Reserve (Fed), surprised the world by cutting its benchmark interest rate by 50 basis points (bps) to a range of 4.75-5.0% on September 18, 2024 at 18 UTC (01 Indonesia time). (1 and 8 are lucky numbers in Chinese :))

The 50 basis point cut was larger than market expectations of just 25 basis points. This was the first cut since March 2020, or four years ago when the Covid-19 pandemic began.

As we know, the Fed raised interest rates by 525 basis points from March 2022 to July 2023. Then they kept the interest rates at 5.25-5.50% from September 2023 to August 2024 or more than a year.

At the time of the FED decision, Bitcoin spiked 2.6% to $61,318 but then corrected as most of them are momentum driven.

Will this also bring a new cycle to the crypto market in the near future and ALT season? Let me know your thoughts below.