The Federal Reserve announced on Wednesday that it will lower its benchmark interest rate by 50 basis points, marking the central bank\u2019s first cut since the start of the COVID-19 pandemic.<\/p>\n
Immediately after the announcement, Bitcoin\u2019s price rocketed back above $60,000, while the S&P500 shot up by 0.7%.<\/p>\n
The central bank said<\/a> it has gained \u2018greater confidence\u201d that inflation is heading back down to 2%, even though it remains somewhat elevated. <\/a>Bitcoin \/ USD. Source: TradingView<\/p>\n The post Federal Reserve Announces 0.5% Interest Rate Cut, Bitcoin Soars Above $60K<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The Federal Reserve announced on Wednesday that it will lower its benchmark interest rate by 50 basis points, marking the central bank\u2019s first cut since the start of the COVID-19 pandemic. Immediately after the announcement, Bitcoin\u2019s price rocketed back above $60,000, while the S&P500 shot up by 0.7%. The central bank said it has gained […]<\/p>\n","protected":false},"author":0,"featured_media":7864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7863"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7863"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/7864"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u201cJob gains have slowed, and the unemployment rate has moved up but remains low,\u201d the Fed added.
\nThis month\u2019s meeting was one of the first in years when the Fed\u2019s next policy decision was truly a toss-up for odds makers.
\nHours before their announcement, interest rate traders priced in the odds of a 50 basis point cut at 65%, versus 35% odds for a 25 point cut, according to CME Fedwatch<\/a>. Meanwhile, crypto bettors on Polymarket had the odds at 43% for 50bps, and 57% for 25 bps.
\nLower rates are generally seen as bullish for Bitcoin since it allows investors to borrow money more cheaply to buy risk assets. It also increases the money supply, which is generally bullish for scarce assets like gold or BTC.
\nThat said, former Fed Vice Chair Richard Clarida warned the Financial Times<\/em><\/a> last week that a non-standard 50 basis point cut could spook the market into thinking something is wrong. \u201cThey can trigger the view of, \u2018Wow. What do they know that we don\u2019t know?\u2019\u201d he said at the time.<\/p>\n
![<\/a>Bitcoin \/ USD. Source: TradingView<\/p>\nThe post Federal Reserve Announces 0.5% Interest Rate Cut, Bitcoin Soars Above $60K<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"The Federal Reserve announced on Wednesday that it will lower its benchmark interest rate by 50 basis points, marking the central bank\u2019s first cut since the start of the COVID-19 pandemic. Immediately after the announcement, Bitcoin\u2019s price rocketed back above $60,000, while the S&P500 shot up by 0.7%. The central bank said it has gained […]<\/p>\n","protected":false},"author":0,"featured_media":7864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7863"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7863"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/7864"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}](\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2024\/09\/BTCUSD_2024-09-18_14-07-14.png\"){kind=link}