On September 19, Bitcoin (BTC) witnessed significant fluctuations in its value following the Federal Reserve’s Federal Open Market Committee (FOMC) meeting, yet it successfully remained above the pivotal $60,000 mark.
During the meeting, Fed Chair Jerome Powell addressed the ongoing speculation by announcing a 50 basis point reduction in interest rates following an extended period of strict monetary policies.
In the official statement, it was noted:
“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”
This policy adjustment follows a lengthy stretch of interest rate increases aimed at controlling inflation throughout 2022 and 2023. This shift aligns with the actions of other global central banks, including the European Central Bank, which has also decreased rates this year in response to diminishing inflationary pressures.
Bitcoin’s Performance Above $60,000
In the aftermath of the Fed’s announcement, Bitcoin briefly surged past $61,000. However, this momentum was short-lived as prices dipped back below $60,000 within an hour, only to see a rally from bullish traders. Currently, Bitcoin is trading within a tight range, finding support around $59,000 and hitting resistance near $61,230.
As of the latest update, Bitcoin is priced at $60,469, reflecting a modest increase of 0.53% over the last 24 hours.
Despite the initial volatility post-FOMC meeting, Bitcoin has entered a more stable phase. Key moving averages indicate a cautiously neutral market sentiment, with the 7-period moving average (MA) at $60,280.1 and the 99-period MA at $60,075.3.
Although a reversal has occurred, analysts caution that further volatility may ensue in the coming days. Historical trends reveal that cryptocurrency markets often react sharply to macroeconomic news but may experience corrections as investors assess the longer-term impacts.
Struggles of Altcoins
In contrast to Bitcoin, altcoins had a tougher day, as most faced losses, only beginning to recover post-FOMC meeting.
Ethereum (ETH) traded below $2,300 for the majority of the day before attempting a recovery following the Fed’s updates. At present, ETH is valued at $2,337, down by 0.16% over the last 24 hours.
Others fared somewhat better; BNB rose by 0.88% to $550.05, while Solana (SOL) managed a slight gain of 0.19%, currently trading at $131.60.
On the other hand, XRP experienced a decline of 0.60%, pricing at $0.581, while Dogecoin (DOGE) crept up by 1.45% to $0.1024.
Toncoin (TON) exhibited impressive growth with a rise of 2.12%, reaching $5.63, whereas Tron (TRX) saw a decrease of 0.54%, currently priced at $0.1492. Among the top cryptocurrencies, Cardano (ADA) recorded a modest gain of 1.26% at $0.3375, while Avalanche (AVAX) experienced a slight drop of 0.01%, trading at $23.86.