Bitcoin Price Reaction Post Federal Reserve Rate Cut: What Investors Should Monitor
Bitcoin Shows Resilience After Fed Rate Decision
Bitcoin edged up 0.5% Wednesday afternoon to slightly above $60,000, after the Federal Reserve reduced its key policy rate by half a percentage point, its first cut since March 2020 and the largest cut in 16 years.
“The Fed's move towards less restrictive policy should be a positive catalyst for Bitcoin as it will invite a lower U.S. dollar and renewed upside pressure on inflation,” remarked Joel Kruger, market strategist at LMAX Group, in an email to MarketWatch.
Market Focus Shifts to Future Rate Cuts
Investors are quickly shifting their attention to the magnitude and duration of rate cuts in this cycle, as highlighted by David Lawant, head of research at FalconX. One of the most crucial aspects to monitor is the trajectory of economic activity.
Technical Analysis: Bitcoin's Path Forward
From a technical standpoint, Bitcoin must establish a clear break above $65,000 to exemplify the beginning of a larger upward movement that could push it to new record highs. Kruger noted that the cryptocurrency has been trading within the range of $50,000 to $72,000 over the past several months after reaching an all-time high of $73,798 in March.
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