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Bitcoin News – Bitcoin Steady Above $60K as FOMC Rate Decision Looms

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Bitcoin News - Bitcoin Steady Above $60K as FOMC Rate Decision Looms

Bitcoin News – How the Fed’s Rate Cut Could Impact Bitcoin and Crypto Markets

Bitcoin News – Bitcoin (BTC) is holding above $60,000 early Wednesday, after briefly dipping below this level during late U.S. trading hours. Global traders are eagerly awaiting the U.S. Federal Open Market Committee (FOMC) meeting, where Chair Jerome Powell is expected to announce a highly anticipated rate cut.

Bitcoin and Major Cryptos Movement

At press time, Bitcoin traded at just over $60,300, marking a near 4% increase over the past 24 hours, extending its weekly gains to over 7%. Other major tokens showed mixed results: Ether (ETH), BNB, and Dogecoin (DOGE) rose by less than 1%, while XRP, Cardano’s ADA, and Toncoin (TON) saw slight declines. The CoinDesk 20 index (CD20), which tracks the largest tokens, increased by 1.1%.

FOMC Rate Cut Expectations

The FOMC is expected to release its interest rate decision at 2 p.m. Eastern Time. Historically, lower borrowing costs have boosted investor sentiment in riskier markets, including cryptocurrency. According to Fed funds data, traders are pricing in a 67% chance of a cut that would lower rates to the 4.5%-5% range from the current 5.25%-5.5%. Some traders even speculate a larger 50-basis-point cut, which could drop rates by half a percentage point rather than the traditional quarter-point cut.

On Polymarket, traders are divided between a 100 basis points (bps) and 125 bps cut, giving both scenarios a 31% chance of occurring. However, a 50 bps cut might trigger market concerns, as it could signal a weakening economy.

Market Reaction to Rate Cuts

“The size of the rate cut matters because it could lead to different market reactions. While a 25 bps cut would likely boost markets, a 50 bps cut might signal recession concerns, potentially triggering a deeper correction in risk assets,” said Alice Liu, research lead at CoinMarketCap, in an email to CoinDesk.

She added that while a larger cut may spur fears of economic instability, Q4 has historically been a strong period for Bitcoin, with an average 90.33% price increase during this quarter over the past 10 years.

Scaramucci’s Bitcoin Prediction

Speaking at the Token 2049 conference in Singapore, SkyBridge Capital founder Anthony Scaramucci predicted that Bitcoin would reach record highs amid rate cuts and clearer U.S. regulations around crypto. Scaramucci even foresees a possible 150 bps rate cut in the next Fed meeting.

Sui Rises on USDC News

Elsewhere in the crypto world, Sui surged more than 7%, supported by the launch of USDC on the platform and the activation of Circle’s Cross-Chain Transfer Protocol (CCTP). This technology allows for seamless cross-chain transfers on Sui.

Meanwhile, during Token 2049, Circle announced a new partnership with Polymarket to further integrate Circle’s infrastructure, including CCTP, into the prediction market platform.

FAQ

What is the current price of Bitcoin?

As of the latest report, Bitcoin is trading at just over $60,300, up nearly 4% in the past 24 hours.

What are the expectations for the Federal Reserve’s rate cut?

Traders are anticipating a 67% chance of a rate cut that will lower borrowing costs to the 4.5%-5% range. There’s speculation of a larger 50 basis-point cut, which could signal concerns about the economy.

How is the cryptocurrency market reacting to the FOMC meeting?

The market is showing increased volatility ahead of the FOMC rate decision. While Bitcoin has gained, major tokens like XRP and Cardano’s ADA are experiencing slight declines.

Bitcoin News - Bitcoin Steady Above $60K as FOMC Rate Decision Looms

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