Bitcoin Jumps as Fed Holds Rates Steady, signals Further Cuts
Washington D.C. – Bitcoin (BTC) briefly spiked to $117,000 Wednesday before settling to $115,570 following the Federal Reserve’s decision to hold interest rates steady, while concurrently signaling potential rate cuts later this year. The move comes as markets increasingly anticipate easing monetary policy, a historically bullish signal for risk assets like cryptocurrency.
The Fed opted to maintain its benchmark interest rate, with market participants assigning a 91.9% probability to a 25 basis point rate cut at the October 29 meeting, according to CME data.Prior to the announcement, expectations for a more aggressive 50 basis point reduction were low, at just a 4% chance.
Fed officials indicated they foresee two more quarter-point rate cuts before the end of the year, though Chair Jerome Powell cautioned, “We’re not on a pre-set path.”
Financial institutions were divided on the Fed’s September move. Standard Chartered predicted a 50 basis point cut, while Goldman Sachs CEO David Solomon anticipated the 25 basis point reduction that ultimately occurred.
Lower interest rates generally incentivize investment in risk-on assets, as customary options like bonds become less appealing. Bitcoin is currently up 1.03% over the past 30 days, according to CoinMarketCap.
