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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.