Bitcoin has climbed back to $60,000, fueled by anticipation of a Federal Reserve interest rate cut expected next week. Bitcoin’s rally comes as markets prepare for the possibility of a 25-50 basis point rate reduction, a move that many believe could further boost BTC and risk-on investments.
BREAKING: $60,000 #Bitcoin 🚀 pic.twitter.com/pualhxdQOU
— Bitcoin Magazine (@BitcoinMagazine) September 13, 2024
Earlier this summer, Federal Reserve Chair Jerome Powell hinted that a rate cut could come as early as September. Speaking on June 12th, Powell noted that the central bank would consider lowering rates once they were confident inflation was moving back toward their 2% target. This week’s announcement that U.S. inflation has dropped to 2.5%, lower than expectations, has potentially paved the way for such a move.
JUST IN: 🇺🇸 Fed Chair Powell says an interest rate cut could come as soon as September 👀 pic.twitter.com/RuIFqVZqSC
— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024
The Federal Reserve announce its decision this coming Wednesday, September 18, at the next scheduled Federal Open Market Committee (FOMC) meeting. A rate cut could provide additional momentum for Bitcoin, which has already risen more than 125% over the last year.
Just yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, following the Bank of Canada’s decision to also reduce its policy rate by 25 basis points last week.