Bitcoin continues its upward trend, reaching $60,000 as anticipation grows for a potential Federal Reserve interest rate cut next week. The rally in Bitcoin comes amidst speculation of a 25-50 basis point rate reduction, a move that could further boost BTC and other risk-on investments.
Federal Reserve Chair Jerome Powell had hinted at a rate cut earlier this summer, suggesting that the central bank would consider lowering rates once inflation started moving back towards their 2% target. With U.S. inflation dropping to 2.5% this week, lower than expected, the stage is set for a potential rate cut announcement.
The Federal Reserve is set to announce its decision at the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, September 18. A rate cut could provide a significant boost to Bitcoin, which has already seen a remarkable 125% increase over the past year.
Recent moves by other central banks, such as the European Central Bank and the Bank of Canada, have also seen interest rate cuts in recent weeks. This global trend towards easing monetary policy could further support Bitcoin’s upward trajectory.
As investors eagerly await the Federal Reserve’s decision next week, all eyes are on Bitcoin and the cryptocurrency market as they continue to show resilience and strength in the face of economic uncertainty.