Bitcoin Crosses $63,000 Level as Fed Cuts Interest Rates for the First Time in Four Years

Market experts believe this news could propel Bitcoin to new heights! A 0.5% Rate Cut! Although a 25 basis point reduction was expected

Bitcoin price quickly crossed over the $63,000 level following the announcement of the most anticipated rate cut of the year. The news comes as Fed Chair Jerome Powell announced that the central bank will cut interest rates for the first time in four years, in a move that could propel Bitcoin to new heights, according to market experts.

A 0.5% Rate Cut!

While a 25 basis point reduction was expected, there was a 50 bps cut instead, in what appears to be a bold strategy to relax monetary policy, in line with investors’ hopes for swift action amid the economic uncertainty.

Powell announced that the central bank of the US will cut interest rates by 0.5%, bringing them to a range between 4.75% and 5%. Bitcoin Surging past its previous $73,000 record will likely propel the rest of the $2.2 trillion crypto industry. But there is uncertainty around the US elections, which might jeopardize the potential rally.

Robert Kiyosaki, a prominent Bitcoin advocate, had earlier stated in an X post that the Bitcoin, gold, and silver prices are about to explode following the Fed’s rate cuts.

Bitcoin, gold, silver prices about toEXPLODE…. As stated in my previous tweet…. you talkers….cowards discussing which is better…. Gold or Bitcoin…will be Big Losers… when Marxist Fed PIVOTS…cutting interest rates…and real assets go up in price…as fake money leaves fake…

“The real assets could go up in price as fake money leaves fake assets and flee to real assets like real estate, gold, silver, and Bitcoin,” he remarked.

Crypto Market Rallies

The crypto market market rallied 2% to just $2.2 trillion on the much-awaited announcement. Ether bounced over 5% to $2,435 over the past 24 hours, while SOL surged over 6% to $138. The reduced interest rates and borrowings getting cheaper could prompt investors to buy high-risk assets like stocks and crypto.

As the broader crypto market rose with Bitcoin, it also triggered substantial liquidations. Derivatives crypto traders have seen $204.3 million worth of contracts forced to liquidate in the past 24 hours, of which $130.5 million were short positions, while $73.8 million were from longs, implying a market tilt as prices surged.

What Could Hold The Potential Rally?

Several factors could overturn the potential rally, even before it gets some momentum. The major one being the upcoming US elections. According to Bernstein analysts, a Trump win will drive Bitcoin to as high as $90,000 this year, and the cryptocurrency could fall to as low as $30,000 if Trump does not win.

“While elections may create regulatory headwinds, monetary policy is providing tailwinds, making Bitcoin the most likely winner,” said Greg Magadini, director of Derivatives at Amberdata.

$60,000: A Critical Background

“A tug of war has been created between bulls and bears as the short-term holders are selling from August, signaling a potential price bottom, while long-term holders are maintaining support above $60,000,” noted Avinash Shekhar, CEO of Pi42.

He added that the $60,000 level is a critical battleground and that “a high above $62K could steer in bullish momentum, while a breakdown below $60K could extend selling pressure.”

Also Check Out: Is Crypto Bull Run Imminent? What’s Next After the FED’s Interest Rate Cut?

What do you think? Will Bitcoin soon achieve its new all-time high or the looming headwinds could impede its growth? Stay tuned to know more.