Jumps Near $63K Following Major Fed Rate Cut
Bitcoin’s price surged on Thursday following the Federal Reserve’s significant interest rate cut, marking the start of an easing cycle.
The cryptocurrency rose by 4.7%, reaching $62,947.00 by 09:05 ET (13:05 GMT), and briefly touched a high of $62,539.80. This increase allowed Bitcoin to break out of its previous trading range of $50,000 to $60,000, although it remains uncertain if this upward momentum can be sustained.
The broader cryptocurrency market also experienced gains after the Fed’s decision, though the overall rise was moderated by the performance of certain altcoins.
### Bitcoin’s Rise and the Fed’s Outlook
As the largest cryptocurrency, Bitcoin mirrored the upswing in risk-driven assets as investors reacted positively to the Fed’s rate cut and the commencement of the bank’s first easing cycle since 2020. However, this optimism was tempered by concerns about the perceived fragility of the U.S. economy, as the 50 basis points cut exceeded market expectations.
Fed Chair Jerome Powell addressed some economic concerns by stating that the risks of higher inflation and a cooling labor market were balanced. However, he also indicated that the Fed does not plan to reduce rates to historically low levels, suggesting that interest rates will be maintained at a higher level compared to past instances. This perspective strengthened the dollar.
While lower interest rates are generally favorable for high-risk assets like cryptocurrencies, the likelihood of returning to the ultra-low rates observed during the COVID-19 pandemic is diminished. Such low rates were significant factors in the crypto bull run of 2021. Currently, the industry is facing various challenges, including regulatory pressures and a decline in retail interest, despite the recent introduction of spot Bitcoin exchange-traded funds, which only provided temporary relief.
### Cryptocurrency Performance Today: Altcoins Follow Bitcoin’s Lead
The overall cryptocurrency market benefited from an increased appetite for risk, with prices rising alongside Bitcoin. The second-largest crypto asset climbed over 5%, reaching $2,435.44, while other digital currencies saw gains ranging from 2.5% to 7.8%.
Among meme tokens, one notable cryptocurrency experienced a rise of 3.7%.
### U.S. Elections and Crypto Regulations: A Binance Executive’s Perspective
The crypto sector is observing the upcoming U.S. presidential election closely, anticipating that the outcome could significantly impact blockchain and cryptocurrency regulations, which would also influence global markets. However, Vishal Sacheendran, Binance’s Head of Regional Markets, shared a differing opinion during an interview at the Token2049 event. He suggested that the election’s outcome may not substantially affect worldwide digital asset regulations.
“Crypto regulations are completely decentralized,” Sacheendran remarked, highlighting that regional policies are often tailored to each country’s unique context. He pointed out that markets in regions such as the Middle East, Latin America, and Southeast Asia are already aware of what is best for their economic environments.
He also emphasized the increasing significance of countries like Singapore, Thailand, Indonesia, and India, which have adopted more progressive stances towards cryptocurrency, with local leaders and regulators actively fostering a supportive environment for the development of Web3 talent.