Bitcoin has climbed back up to $60,000, boosted by anticipation of a Federal Reserve interest rate cut due next week. Bitcoin’s rally comes as markets brace for the possibility of a 25-50 basis point rate cut, a move many believe could further boost BTC and risk investments.
Earlier this summer, Federal Reserve Chairman Jerome Powell hinted that a rate cut could come as soon as September. In a speech on June 12, Powell signaled that the central bank would consider lowering rates once it was confident that inflation was returning to its 2% target. This week’s announcement that U.S. inflation has fallen to 2.5%, below expectations, has potentially paved the way for such a move.
The Federal Reserve will announce its decision next Wednesday, September 18, at the next scheduled meeting of the Federal Open Market Committee (FOMC). A rate cut could provide an additional boost to Bitcoin, which has already risen more than 125% over the past year.
Just yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, following the Bank of Canada's decision to also reduce its policy rate by 25 basis points last week.
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