Prices fell after the Federal Reserve cut borrowing rates by half a percentage point (50 basis points) in its first interest rate cut since the coronavirus pandemic began.
The U.S. central bank has cut the federal funds rate to the range of 4.75% to 5%. The bold cut signals growing concerns about the state of the U.S. economy and has sparked volatility in multiple markets, including cryptocurrencies.
As of 16:40 ET (20:40 GMT), the price of Bitcoin was unchanged on the day, trading at $60,189.00, down about 1.9% in the day, and down 1.1% at $2,138.87.
Cryptocurrency stocks gave back gains from the previous day. MicroStrategy Incorporated (NASDAQ:) shares rose 1.5% for the day, but most bitcoin miners, including Marathon Digital Holdings (NASDAQ:) and Riot Platforms (NASDAQ:), and cryptocurrency exchanges fell. Coinbase Global Inc (NASDAQ:) ended flat to slightly down.
The cut was announced after the Fed's two-day meeting and comes after a year of aggressive monetary tightening to fight inflation. Ten of the Fed's 19 officials favored at least another half-point cut in interest rates at its final two meetings in 2024.
Historically, interest rate cuts have weakened the US dollar and benefited riskier assets such as stocks.
Bitcoin has struggled to maintain the gains it made earlier this year, trading around $60,000 in recent days after hitting a high of $65,000 in August.
