Bitcoin Surges Past $62,000 After Fed Cuts Rates by 0.5%

After the long-awaited rate cut by the Federal Reserve, the crypto market started showing signs of recovery.

Bitcoin surged past $62,000 following the U.S. Federal Reserve’s unexpected rate cut of 50 basis points. This marks the first reduction in rates since 2020, a shift that crypto traders had widely forecasted.

Many believe that this policy change will provide a boost to Bitcoin and the broader crypto market.

The Federal Open Market Committee (FOMC) made the bold decision to reduce interest rates by 0.5%, its most significant cut since the onset of the COVID-19 crisis, in an effort to counter potential weakness in the labor market.

Investors had anticipated such a move, with data from CME Group’s FedWatch Tool showing that a large majority expected a cut between 0.25% and 0.50%.

At the time of writing, Bitcoin is trading at $62,040, surging 2.6% during the past day and has a trading volume of around $46.3 billion. Since last week BTC has recovered by more than 7%.

And it is not just Bitcoin – altcoins across the board are soaring after the recent Fed decision. For example, Ethereum soared by almost 4% in the past 24 hours.

Popcat and Sei are the biggest winners during this period, both gaining over 21%. The total crypto market cap jumped by 3.13% in the past 24 hours and is currently at $2.15 trillion.