The recent 0.50% interest rate cut by the US Federal Reserve (Fed) has had a direct impact on the price of bitcoin, marking a 6% increase, its highest level since late August.
This move by the Fed breaks with the aggressive monetary policy that has been in place since March 2020The agency’s decision, which was within market expectations, was received with optimism, accelerating the price of the digital asset.
Before the announcement, Bitcoin was trading at around $59,200. However, just two hours after the Fed’s statement, the currency began to rally. The asset is currently trading at around $63,100.as can be seen in the following graph TradingView.

This increase has been driven by both the rate cut, as reported by CriptoNoticias, and by expectations of further adjustments at upcoming Fed meetings.
More rate cuts expected in the US
The market expects that there will be additional rate cuts of up to 100 basis points in the two meetings scheduledone on November 8 and another on December 19.
The proximity of the US presidential election also raises expectations of increased volatility in the bitcoin and cryptocurrency market.
On platforms like Polymarket, specialized in prediction markets, most users bet for a cumulative rate cut of 100 basis points by the end of the year.
These markets, which are based on collective wisdom, adjust expectations in real time and have become a key tool for predicting market behavior.
A Fed interest rate cut typically means it is cheaper to borrow. When borrowing costs fall, investors have more incentive to borrow money and place it in higher risk assets, such as bitcoin, cryptocurrencies in general and stocks. This can boost demand for BTC, which tends to be reflected in an increase in its price.
Trump pays with bitcoin
Another element that may have contributed to the increase in the price of bitcoin was The first purchase made by a US presidential candidate with the digital currency.
Donald Trump, during a Visit PubKeya bar themed around the first digital currency in New York, has used Bitcoin as a means of payment, reinforcing the growing acceptance of the asset in different areas.
With these factors combined, the Bitcoin market continues to show signs of strength, with investors keeping an eye on the Fed’s next moves and political developments, especially in the United States, which could further increase its volatility.