The price of Bitcoin reacts to the US Federal Reserve's reduction of interest rates by 25 basis points
The price of Bitcoin fell by more than $2000 in the past 24 hours. It dropped by about $500 in the last few minutes, then recovered, coinciding with the US Federal Reserve's announcement of a new interest rate cut - the third this year. The board reduced interest rates by 25 basis points (0.25%), while Powell also confirmed that they expect another cut in 2026.
It seems the market was expecting a larger drop of 50 basis points, which did not happen, leading to the current price volatility. However, this event was largely anticipated, as the odds of a rate cut according to the Bull Market Index approached 99% hours before the press conference.
This decision comes at a time when the cryptocurrency market is experiencing sharp fluctuations. Just yesterday, CryptoPotato reported that the price of Bitcoin surged by about $4000 within minutes, reaching a peak above $94600 before pulling back.
This move has garnered widespread attention in the alternative cryptocurrency market. Notably, the price of Ethereum rose by 9% in the following 24 hours, outperforming many other cryptocurrencies.
