Bitcoin Rises to $60,000 as Markets Prepare for Potential Fed Rate Cut

Bitcoin returned to $60,000, fueled by anticipation of an interest rate cut at the Federal Reserve expected next week. Bitcoin’s rally comes as markets brace for the possibility of a 25-50 basis point cut in the base rate, a move many believe could further boost BTC and venture capital.

BREAKDOWN: $60,000 #Bitcoin 🚀 pic.twitter.com/pualhxdQOU

— Bitcoin Magazine (@BitcoinMagazine) September 13, 2024

Earlier this summer, Federal Reserve Chairman Jerome Powell hinted that a rate cut could happen as early as September. Speaking on June 12, Powell noted that the central bank will consider cutting interest rates once they are confident that inflation is moving back toward their 2 percent target. This week’s announcement that US inflation fell to 2.5%, below expectations, potentially paved the way for such a move.

JUST IN: 🇺🇸 Fed Chair Powell Says Interest Rate Cut Could Come As Soon As September 👀 pic.twitter.com/RuIFqVZqSC

— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024

The Federal Reserve will announce its decision on Wednesday, September 18, at the next scheduled meeting of the Federal Open Market Committee (FOMC). A rate cut could provide an additional boost to Bitcoin, which has already risen more than 125% in the past year.

Just yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, following the Bank of Canada’s decision to also cut its key interest rate by 25 basis points last week.