- Fed Chairman Jerome Powell said the FOMC lowered the federal funds rate by 25 basis points.
- The rate cut comes after Bitcoin hit a new all-time high price following Donald Trump’s election victory.
- Ethereum and Solana also maintained gains of 7% and 4%, respectively, following the rate cut.
Bitcoin (BTC) and the broader crypto market continued to see gains after the US Federal Reserve (Fed) cut interest rates by 25 basis points (bps) on Thursday.
Bitcoin Trades Near $76,000 After Fed Cuts Interest Rates
The Federal Reserve cut interest rates by 25 basis points on Thursday, a move aimed at maintaining flexibility as officials face a slowing labor market and falling inflation rates.
The cut brings the benchmark rate back to between 4.50% and 4.75%, following a 50 basis point cut earlier in September.
After the Federal Open Market Committee (FOMC) meeting, Fed Chairman Jerome Powell held a press conference and said he was pleased with economic activity so far.
“If the economy remains strong and inflation does not rise sustainably towards 2%, we can reduce policy austerity more slowly. If the labor market were to weaken unexpectedly, or if inflation were to fall more quickly than expected, we could act more quickly”, “
The crypto market remained in the green following the Federal Reserve’s decision to cut interest rates.
Historically, Bitcoin and the crypto market have responded positively to low interest rate environments. When the Fed cuts rates, investors typically have a greater appetite for risky assets, leading to a surge in prices for cryptocurrencies like Bitcoin.
Currently, BTC is trading just below its recent all-time high following Donald Trump’s victory in the recently concluded US presidential election.
Other leading crypto assets rallied alongside Bitcoin as the market continued its upward trend. Ethereum saw a 7.3% surge following the announcement, with Solana also seeing gains of 3.5%.
However, Dogecoin is down more than 3% amid the meme sector’s 15% gain. Other categories that extended their gains included the AI sector, which climbed 13.5%, and the DeFi sector, with gains of 18%.
