The Fed lowered its key rate. Bitcoin price soared by $1500 over the day

On the eve of the Fed decided to reduce the rate by 50 bp. — To 4.75–5% per annum. Over the past 4.5 years, this is the first reduction of the key rate by the U.S. regulator.

Against the background of such news, the rate of the main crypto coin was able to overcome the mark of $62,500, which can not but please bitcoin-enthusiasts. Following BTC, other digital assets from the top 10 began to grow. For example, Ethereum also went up in price.

Back in the spring of 2022, the Fed began to increase the key rate as part of the fight against inflation. The last time the rate hike came in July last year.

“Recent indicators suggest that economic activity continues to grow at a solid pace. Job growth has slowed and the unemployment rate has risen but remains low. Inflation has moved further toward the 2% target but remains somewhat elevated,” the regulator said in an accompanying letter.

Some crypto analysts believe that the Fed rate cut will have a positive impact on bitcoin’s prospects. For example, Lark Davis believes that the long-awaited event could be a key prerequisite for BTC growth after the update, which took place in the spring of 2024.