Bitcoin (BTC) experienced significant volatility following the Federal Reserve’s (FOMC) meeting on Sept. 19 but managed to hold above the $60,000 threshold.
Fed Chairman Jerome Powell announced a 50 basis point interest rate cut after four years of tight monetary policy, confirming weeks of speculation.
According to the press release:
“The Committee has increasing confidence that inflation is moving sustainably toward 2 percent and judges that the risks to achieving its employment and inflation objectives are roughly balanced.”
The policy shift comes after a long stretch of interest rate hikes by the Fed to combat inflation, with interest rates increasing throughout 2022 and 2023. The decision is in line with those of other global central banks, including the European Central Bank, which also cut interest rates this year in response to easing inflationary pressures.
Bitcoin holds $60,000
Following the Fed announcement, Bitcoin initially surged above $61,000 but momentum reversed within the hour, with the price dropping below $60,000 before the bulls began to reverse course. Bitcoin traded in a relatively narrow range, with the price finding support near $59,000 and resistance near $61,230.
The flagship cryptocurrency was trading at $60,469 at press time, up 0.53% over the past 24 hours, according to data from CryptoSlate..
Despite the short-term volatility following the FOMC announcement, Bitcoin has settled into more stable territory. Major moving averages such as the 7-period MA at $60,280.1 and the 99-period MA at $60,075.3 suggest that market sentiment is cautiously neutral.
Despite the current reversal, analysts have warned that similar volatility may continue in the coming days. Historical patterns suggest that the cryptocurrency market often reacts strongly to macroeconomic news but may experience a correction as the market digests the longer-term effects.
Altcoins struggle to recover
Altcoins performed much worse than Bitcoin throughout the day, mostly suffering losses and only recovering after the FOMC meeting.
Ethereum (ETH) spent much of the day trading below $2,300 before attempting to recover following the Fed's announcement. At press time, ETH is trading at $2,337, down 0.16% over the past 24 hours.
BNB fared slightly better, trading at $550.05, up 0.88% from the previous day, while Solana (SOL) reversed its intraday losses and rose 0.19% to $131.60.
Meanwhile, XRP has fallen 0.60% over the period and is currently trading at $0.581, while Dogecoin (DOGE) has risen 1.45% to trade at $0.1024.
Toncoin (TON) saw a strong 2.12% increase to hit $5.63, while Tron (TRX) dropped 0.54% and is currently trading at $0.1492. Rounding out the top ten is Cardano (ADA), which is up 1.26% to $0.3375, and Avalanche (AVAX), which is down 0.01% to trade at $23.86.
