Bitcoin Above $62K, US Stock Market Down, and More: Fed’s Rate Cut Aftermath

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As repeatedly said in the past few days, all financial markets, especially crypto, were focused on the FOMC meeting that took place on September 18 as the US central bank was expected to lower the interest rates for the first time in about four years.Many believed the interest rate cuts were already priced in for riskier assets like bitcoin. Others, such as Arthur Hayes,that such actions by the US Fed will cripple the market.

The asset had already jumped from $57,600 to $60,000 a day prior but went on a real rollercoaster after the Fed made it official with a 50 basis point cut. In the first few hours after the12 hours later, when the dust has settled , bitcoin’s price is nearly 3% higher than yesterday and is up by 7% on a weekly scale. The asset tapped a 3-week peak above $62,500 earlier today but has retraced slightly to $60,000 as of now.

The liquidations have shot up to $200 million on a daily scale, with shorts representing the lion’s share. Naturally, BTC leads the way with $75 million in wrecked positions, while ETH is next with $35 million.Even the precious metal faced enhanced volatility after the rate cut, going from $2,550/oz to a new all-time high of $2,600 before retracing to $2,545 and settling at $2,567.. The S&P 500 opened the trading day at 5,641, shot up to nearly 5,680, but closed at 5,618.

Although it’s still early to make grand conclusions, the developments in the first 12 hours show that riskier assets like crypto have so far benefited from the Fed’s rate reduction. Nevertheless, time will tell whether it will indeed turn out to be aOne Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments.

 

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