Bitcoin (BTC) reacted positively to the Federal Open Market Committee (FOMC) meeting, which resulted in a 50 basis points (bps) interest rate cut.
This rate cut marks the start of an easing cycle with more expected in 2024. Crypto investors anticipated this decision as a measure to control inflation and promote job growth.
The Federal Reserve's rate cut comes after inflation cooled to 2.5% in August from 2.9% in July. The rate cut aims to keep the economy steady amid a weaker jobs market.
Analyst Michael van de Poppe noted that rate cuts might happen faster than expected due to the deteriorating labor markets and economy.
The lower interest rates benefit riskier assets like Bitcoin, which often see gains when borrowing costs fall. BeInCrypto data shows BTC trading at $60,730.
