FOMC

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<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s price surged above $62,000 following yesterday’s FOMC meeting.</li> 
 <li>The US Fed decided to cut interest rates by 50 bps, the first rate cut since 2020.</li> 
</ul> 
<p>Bitcoin’s price rallied and surpassed the $62,000 level as the US Fed decided to cut interest rates by 50 bps on September 18.</p> 
<p>At the moment of writing this article, BTC is trading above $62,000, up by 3% in the past 24 hours.</p> 
<figure id="attachment_50803" aria-describedby="caption-attachment-50803" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61.jpeg"><img loading="lazy" decoding="async" class="wp-image-50803 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61.jpeg" alt="BTC price in USD today" width="1200" height="800" title="Bitcoin Price Above $62K, Following US Fed's 50 BPS Rate Cut Decision 23" srcset="https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61.jpeg 1200w, https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61-300x200.jpeg 300w, https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61-1024x683.jpeg 1024w, https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61-768x512.jpeg 768w, https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61-750x500.jpeg 750w, https://crypto.ro/en/wp-content/uploads/2024/09/BTC_1D_graph_coinmarketcap-61-1140x760.jpeg 1140w" sizes="(max-width: 1200px) 100vw, 1200px"></a>
 <figcaption id="caption-attachment-50803" class="wp-caption-text">
  BTC price in USD today
 </figcaption>
</figure> 
<p>Yesterday, BTC’s price surged from around the $59,000 level, topping $61,000, before dipping again. Earlier today, BTC reached a price of over $62,500.</p> 
<h2 id="us-fed-s-rate-cut-decision-triggered-a-btc-rally">US Fed’s Rate Cut Decision Triggered a BTC Rally</h2> 
<p>As Greeks.live noted in a post via X, the Fed’s rate cut decision exceeded the expectations of many macro analysts, but was largely in line with futures market expectations, triggering a rally for BTC and the crypto market. At the same time, US stocks underperformed.</p> 
<p>They also <a href="https://x.com/GreeksLive/status/1836590118968475721" rel="nofollow" target="_blank">noted</a> that regarding options, implied volatility declined significantly across all major maturities, with ultra-short-term IVs falling by more than 25%. Short-term short-selling expectations by large investors fell short.</p> 
<p>According to official notes, the US Fed will have two more meetings this year, on November 8 and on December 19, and the market expects a cumulative 100 bps rate cut.</p> 
<p>The next meeting will be close to the 2024 elections in the US set to take place on November 5, and the market volatility is expected to be high.</p> 
<p><a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a>‘s price also showed increased volatility these days ahead of the FOMC meeting. Lookonchain recently <a href="https://x.com/lookonchain/status/1836596642553958577" rel="nofollow" target="_blank">shared</a> a post highlighting BTC’s price trajectory in relation to the Federal Reserve rate.</p> 
<h2 id="impact-of-fed-s-rate-cuts-hikes-on-btc-s-price">Impact of Fed’s Rate Cuts/Hikes on BTC’s Price</h2> 
<p>Today, in a new post via X, Lookonchain analyzed how the US Fed’s decision to cut interest rates by 50 bps could affect the price of Bitcoin.</p> 
<p>They shared a graph showing the impact of the Federal Reserve’s interest rate cuts and hikes on the price of Bitcoin over the past 10 years.</p> 
<p>According to their graph, the highest impact on Bitcoin’s price was in 2020 when the Covid pandemic debuted and the Fed’s cut rates again, prompting a strong Bitcoin rally between 2020 and 2022.</p> 
<figure style="width: 100%" class="wp-caption alignnone">
 <a href="https://x.com/lookonchain/status/1836596642553958577/photo/1" rel="nofollow" target="_blank"><img loading="lazy" decoding="async" src="https://pbs.twimg.com/media/GXzmobpaAAAHGYg?format=jpg&amp;name=large" alt="Lookonchain via X" width="1930" height="922" title="Bitcoin Price Above $62K, Following US Fed's 50 BPS Rate Cut Decision 24"></a>
 <figcaption class="wp-caption-text">
  Lookonchain via X
 </figcaption>
</figure> 
<p>It remains to be seen whether this round of rate cuts will trigger another BTC rally in Q4 2024.</p> 
<h2 id="fed-s-1st-easing-campaign-in-4-years">Fed’s 1st Easing Campaign in 4 Years</h2> 
<p>As CNBC also noted, the Fed’s rate cut of 50 bps is the first one since the early days of the Covid pandemic, slicing half a percentage point off benchmark rates in an effort to head off a slowdown in the labor market.</p> 
<p>Apart from the emergency rate reductions during the pandemic, the last time the FOMC decided to cut by half a point was back in 2008 during the global financial crisis.</p> 
<p>The Fed’s decision lowers the federal funds rate to a range between 4.75% and 5%. The FOMC indicated more rate cuts of 50 bps by the end of 2024.</p> 
<p>The post-meeting statement said that the Committee has gained greater confidence that inflation is moving towards the 2% target.</p> 
<figure id="attachment_50804" aria-describedby="caption-attachment-50804" style="width: 100%" class="wp-caption alignnone">
 <a href="https://crypto.ro/en/wp-content/uploads/2024/09/19sept.png"><img loading="lazy" decoding="async" class="wp-image-50804 size-full" src="https://crypto.ro/en/wp-content/uploads/2024/09/19sept.png" alt="Fed's Target Range" width="835" height="425" title="Bitcoin Price Above $62K, Following US Fed's 50 BPS Rate Cut Decision 25" srcset="https://crypto.ro/en/wp-content/uploads/2024/09/19sept.png 835w, https://crypto.ro/en/wp-content/uploads/2024/09/19sept-300x153.png 300w, https://crypto.ro/en/wp-content/uploads/2024/09/19sept-768x391.png 768w, https://crypto.ro/en/wp-content/uploads/2024/09/19sept-750x382.png 750w" sizes="(max-width: 835px) 100vw, 835px"></a>
 <figcaption id="caption-attachment-50804" class="wp-caption-text">
  Fed’s Target Range
 </figcaption>
</figure> 
<p>As <a href="https://www.cnbc.com/2024/09/18/fed-cuts-rates-september-2024-.html" rel="nofollow noopener" target="_blank">CNBC</a> highlighted, trading was volatile after the Fed’s decision with the Dow Jones Industrial Average jumping as much as 375 points, before easing.</p> 
<p>The Bank of England, European Central Bank, and Canada’s Central Bank have all cut rates recently.</p>

Bitcoin Price Above $62K, Following US Fed’s 50 BPS Rate Cut Decision

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