Key facts:
The FOMC set a 0.50% cut in interest rates.
Markets, including Bitcoin, initially reacted bullishly.
The Federal Reserve (Fed), the central bank of the United States, has just published the decision of the Open Market Committee (FOMC), its body in charge of monetary policy. It set a cut in interest rates by 0.5%, which now puts them at 5.0%, something to which the markets reacted with high volatility.
This is the first Fed rate cut in more than four years since March 2020.which cuts short the organization’s prolonged aggressive monetary policy. As seen below, for more than a year, rates have remained at 5.5%, their highest level in two decades.
The cut was partly in line with expectations, although many expected a rate cut to 5.25%, as reported by CriptoNoticias and seen below. This explains the reaction seen in the markets.
Following the announcement, the price of Bitcoin (BTC) reacted to the upside by quickly climbing to $61,000 (USD), as seen below. Meanwhile, it remains within the corrective sideways range it has been in for six months after setting a new all-time high in March 2024.
Against this backdrop, further volatility can be expected following Fed Chairman Jerome Powell’s speech, scheduled for half an hour after the announcement.
News in development…
