Bitcoin has surged back to $60,000, fueled by expectations of a Federal Reserve rate cut expected next week. Bitcoin’s rally comes as markets brace for the possibility of a 25-50 basis point rate cut, a move many believe could further boost BTC and risk-based investments.
NEWS: $60,000 #Bitcoin 🚀 photo.twitter.com/pualhxdQOU
— Bitcoin Magazine (@BitcoinMagazine) September 13, 2024
Earlier this summer, Federal Reserve Chairman Jerome Powell indicated that a rate cut could come as early as September. Powell noted on June 12 that the central bank would consider cutting rates once it was confident that inflation was moving back toward its 2% target. This week’s announcement that U.S. inflation has fallen to a lower-than-expected 2.5% may have cleared the way for such a move.
JUST IN: 🇺🇸 Fed Chair Powell says rate cut could happen as early as September 👀 photo.twitter.com/RuIFqVZqSC
— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024
The Federal Reserve will announce its decision on Wednesday, September 18, at the next scheduled meeting of the Federal Open Market Committee (FOMC). A rate cut could provide additional momentum for Bitcoin, which has already risen more than 125% in the past year.
Yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, after the Bank of Canada decided last week to also cut its policy rate by 25 basis points.