bullish

United

Solana

Bitcoin

Arthur

<p>The first <a href="https://coinpedia.org/news/bitcoin-hits-61k-as-fed-slashes-interest-rates-by-50-bps-after-four-years/">U.S. interest rate cut </a>in nearly four years is making waves across global markets, with stock indexes, precious metals, and crypto assets all showing noticeable impacts.</p>   
<p>During the mid-London session, the total crypto market cap surged by nearly 2% in the past 24 hours, reaching around $2.24 trillion on Thursday. Crypto traders rejoiced as <a href="https://coinpedia.org/price-analysis/bitcoin-breaks-above-62000-will-the-fed-rate-cuts-push-the-btc-price-to-70000/" target="_blank" rel="noreferrer noopener">Bitcoin’s price</a> climbed above $62,000, while altcoins like Ethereum, Avalanche, and Solana led a broader market recovery.</p>   
<p>This bullish momentum has reduced fears of further market capitulation. Bitcoin’s Fear and Greed Index now stands at 49, indicating neutral sentiment among traders.</p>   
<h2 class="wp-block-heading" id="h-understanding-the-long-term-rate-impact">Understanding the Long-Term Rate Impact</h2>   
<p>While the U.S. quantitative easing measures have sparked optimism, some Wall Street analysts urge caution. <a href="https://coinpedia.org/news/bitmex-founder-hints-fed-rate-cut-could-crash-crypto-markets-yet-crypto-taking-over-central-bank/" target="_blank" rel="noreferrer noopener">Arthur Hayes</a>, co-founder and CIO of BitMEX, warned that the Federal Reserve's 50 basis points rate cut could lead to a “nuclear catastrophe” for financial markets before a long-term rally takes hold.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/santimentfeed/status/1836656352334352779?s=46 
 </div>
</figure>   
<p>Hayes also noted that the rate cuts signal deeper issues within the global financial system. Historically, Fed-led quantitative easing with 0.5% rate cuts has triggered stock market pullbacks before eventual recoveries.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/brett_eth/status/1836484718877163757?s=46 
 </div>
</figure>   
<p>Despite warnings from analysts, many traders are keeping a close eye on <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin's historical "Uptober" </a>trend, which has often delivered strong gains for the asset in the final months of the year.</p>   
<h2 class="wp-block-heading" id="h-whales-pull-back-as-demand-declines">Whales Pull Back as Demand Declines</h2>   
<p>On-chain data suggests whale investors are slowing down their buying activity. The demand for spot Bitcoin and Ethereum in the U.S. has notably decreased, with large holders, including those led by Ceffu, offloading significant volumes of assets in recent times.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/lookonchain/status/1836678574360916089?s=46 
 </div>
</figure>   
<p>Also Check Out: <a href="https://coinpedia.org/news/ethereum-whale-offloads-24-7-million-in-eth-over-3-days-shows-no-signs-of-stopping/" target="_blank" rel="noreferrer noopener">Ethereum Whale Offloads $24.7 Million in ETH Over 3 Days, Shows No Signs of Stopping</a>&nbsp;</p>   
<p><strong>The Fed's rate cut has ignited a crypto bull run, but will this momentum last? Only time will tell.</strong></p>

Coinpedia Fintech News

Table of Contents

CoinPedia News

Other articles published on Sep 19, 2024

Analyst Predicts XRP Will Hit $1.10 Soon—Are You Ready?

Solana-Based $POPCAT Tops in Memecoins with Big Gains: Whale Makes $1.2 Million

Hamster Kombat September 19: Daily Combo Card and Cipher Code

BlackRock Exec Makes Bullish Bitcoin Prediction

$1000 Price Reiterated. Can XRP Rally 170,000%? XRP Army Responds

Trump Makes History with First Bitcoin Transaction in New York Bar

Join our free newsletter for daily crypto updates!