Bitcoin (BTC) witnessed significant volatility on Sept. 19, following the Federal Reserve’s FOMC meeting. Despite the market fluctuations, the cryptocurrency managed to stay above the $60,000 level.
Fed Announces Rate Cut
Fed Chair Jerome Powell put an end to weeks of speculation by revealing a 50 basis point rate cut, the first in four years, following a period of restrictive monetary policy.
The official press release stated, “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 shift follows several years of rate hikes designed to combat inflation, aligning with moves made by other central banks, such as the European Central Bank, which also lowered rates this year due to easing inflation pressures.
Bitcoin Holds $60k
Bitcoin initially surged past $61,000 following the Fed’s announcement but quickly saw a reversal. Prices fell below $60,000 before bulls stepped in to drive the price back up. Bitcoin is currently trading within a narrow range, with support around $59,000 and resistance near $61,230.
Data from CryptoSlate shows Bitcoin trading at $60,469 at press time, up 0.53% over the last 24 hours. Despite the brief post-FOMC volatility, Bitcoin has stabilized. Key indicators, such as the 7-period moving average at $60,280.1 and the 99-period MA at $60,075.3, suggest that market sentiment remains neutral.
However, analysts caution that this volatility may continue in the coming days, as the crypto market often reacts sharply to macroeconomic events. Historically, the market tends to correct itself as the longer-term effects of such news are digested.
Altcoins Struggle to Rebound
While Bitcoin managed to hold steady, altcoins faced a tougher battle. Many saw losses, with some beginning to recover only after the FOMC announcement.
Ethereum (ETH) hovered below $2,300 throughout most of the day, before attempting a recovery post-Fed news. It was priced at $2,337 at press time, down 0.16% over the last 24 hours.
BNB managed a slight increase, rising by 0.88% to $550.05. Solana (SOL) also reversed its earlier losses, gaining 0.19% to trade at $131.60.
Meanwhile, XRP dropped by 0.60%, now priced at $0.581, and Dogecoin (DOGE) saw a 1.45% gain, trading at $0.1024.
Toncoin (TON) experienced a notable rise of 2.12%, reaching $5.63. However, Tron (TRX) fell by 0.54% and is currently valued at $0.1492. Rounding out the top 10, Cardano (ADA) rose by 1.26% to $0.3375, while Avalanche (AVAX) saw a slight 0.01% decrease, trading at $23.86.
Conclusion
Although Bitcoin held strong in the face of market volatility following the Fed’s announcement, altcoins struggled to recover. The coming days may see continued fluctuations as the market reacts to the broader economic environment.
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