On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
Fed Chair Jerome Powell explained that this decision was based on the economy’s overall strength and a belief that inflation will soon align with the 2% target.
Despite concerns about job market stability, Powell reported no significant increase in unemployment claims or layoffs.
The Fed plans additional cuts, with two more 25-basis-point reductions this year and further decreases in 2025 and 2026.
Economist Alex Krüger sees this move as a sign of proactive management, with positive implications for both stocks and cryptocurrencies.
Following the announcement, the stock and crypto markets, including Bitcoin, saw gains.
Krüger also noted that Bitcoin’s performance could be influenced by the upcoming US presidential election, advising investors to watch for potential changes based on election outcomes.
The Federal Reserve’s recent 50 basis point rate cut left experts divided.
After the long-awaited rate cut by the Federal Reserve, the crypto market started showing signs of recovery.
Federal Reserve meetings usually follow a predictable pattern, but this week’s Federal Open Market Committee (FOMC) gathering was shrouded in uncertainty.
At the Token2049 event on September 18, Arthur Hayes, co-founder of BitMEX, warned that upcoming interest rate cuts by the U.S. Federal Reserve could trigger a major downturn in the crypto market.