Bitcoin steadied on Thursday, with broader crypto markets advancing after the Federal Reserve cut interest rates and flagged more monetary easing, largely in line with market expectations.
Crypto markets were also encouraged by the U.S. Securities and Exchange Commission approving new listing standards for exchange-traded products, opening the door for more funds tracking cryptos.
But caution over the Fed’s outlook on the economy and inflation, coupled with persistent doubts over corporate crypto treasuries, kept overall gains in crypto markets limited.
Bitcoin rose 0.1% to $117,267.6 by 01:29 ET (05:29 GMT).
Fed cuts rates by 25 bps as expected, sees more cuts
The Fed cut its benchmark interest rate by 25 basis points to a range of 4.0% to 4.25%, as expected, on Wednesday.
The central bank’s forecasts showed policymakers supporting more easing in the remainder of the year, especially if the labor market continued to deteriorate.
But Fed Chair Jerome Powell still flagged risks towards the U.S. economy, especially from a cooling labor market and sticky inflation. Powell also largely dismissed calls for a bigger, 50 basis point cut, as demanded by President Donald Trump and his allies.
Lower rates bode well for crypto, given that they encourage more capital into speculative markets. The sector’s 2021 bull run was driven chiefly by global interest rates falling to near zero levels in the aftermath of the COVID-19 pandemic.
Source :
https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-steadies-at-117k-on-fed-rate-cut-sec-listing-overhaul-4243802
