Bitcoin Tests $61,000 Amid Fed Rate Cut

On September 18, the United States Federal Reserve lowered the target range for the federal funds rate to 4.75–5% per annum. This marks the first reduction since March 2020.

The decision aligned with market expectations.

“Recent indicators suggest that economic activity continues to expand at a solid pace. Job gains have slowed, and the unemployment rate has increased but remains low,” the press release stated.

The Fed reaffirmed its previous goals: maximum employment and 2% inflation over the long term. The regulator believes the indicator is “steadily moving” in this direction.

On September 11, the U.S. Bureau of Labor Statistics released a report on consumer prices. The index value matched the forecast at 2.5%.

Following the Fed’s decision, the leading cryptocurrency surged above $60,000, momentarily reaching $61,000.

Following Bitcoin, other digital assets in the top 10 by market capitalization also began to rise.

At the time of writing, the cryptocurrency market capitalization stands at $2.15 trillion.

Today’s Fed decision marked the end of the cycle of maintaining the key rate. The last change occurred in July 2023, when the agency raised the range by 25 basis points to 5.25–5.5% per annum.

Previously, CoinShares analysts linked the increase in inflows to cryptocurrency investment funds with market hopes for a 50 basis point Fed rate cut. From September 8 to 14, inflows amounted to $436 million following an outflow of $726 million the previous week.

Earlier, experts were divided on Bitcoin’s prospects in September.