Fed Cuts Rates by 50 Basis Points, Crypto Market Rallies in ResponseOn September 18, Federal Reserve Chair Jerome Powell addressed reporters in Washington. The Fed announced a 50 basis point reduction in its benchmark interest rate range, bringing it to 4
Fed Cuts Rates by 50 Basis Points, Crypto Market Rallies in Response
On September 18, Federal Reserve Chair Jerome Powell addressed reporters in Washington. The Fed announced a 50 basis point reduction in its benchmark interest rate range, bringing it to 4.75% to 5%. This marks the first rate cut since March 2020. The news spurred a general upswing in the cryptocurrency market.
Bitcoin surpassed $62,000, registering a gain of over 3% in the past 24 hours. Ethereum climbed above $2,400, reflecting a 4.9% increase over the same period. Data from Coinglass reveals that the total cryptocurrency market capitalization has exceeded $2.15 trillion, marking a surge of over 16% compared to its early August lows of around $1.85 trillion.
Jeffrey Ding, Chief Analyst at HashKeyGroup, stated that the Fed's 50 basis point cut signals significant concern about the current economic climate, necessitating a steeper rate reduction cycle. The global economy currently faces liquidity challenges, and this rate cut injects fresh vitality into global financial markets. This positive impact extends beyond Bitcoin, as the entire crypto market is expected to experience a new surge in activity within the context of a looser monetary policy.
Jeffrey Ding further pointed out that while volatility remains a factor, this recent cryptocurrency rally may attract more investment and innovation into the field, propelling the overall crypto ecosystem into a new developmental phase.
It's crucial to acknowledge the inherent risks associated with the cryptocurrency market. Regulatory bodies in China have prohibited financial institutions from providing any services related to cryptocurrency and token trading. Investors are urged to exercise caution and avoid blind investment trends.
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