Bitcoin saw a 1 percent increase, reaching $60,778, after the Federal Reserve’s first interest rate reduction since the pandemic began. As per the CNBCTV18, this decision is expected to encourage greater demand for riskier assets, as optimism grows for potential new highs in the cryptocurrency market, particularly amid clearer regulations. The rate cut comes at a time when Bitcoin has been gaining mainstream acceptance, fueled by a more favorable regulatory environment.
The US central bank lowered its benchmark rate by half a percentage point, with predictions showing that more cuts may follow in 2024. In response, Bitcoin’s price jumped as lower rates tend to boost riskier investments. Market analyst Karim Dandashy highlighted this reaction, noting that investors found relief after weeks of uncertainty. Since peaking at nearly $74,000 in March, Bitcoin has remained within a narrow trading range. However, optimism remains strong, with industry insiders like Anthony Scaramucci predicting potential new record highs due to the rate cut and improved regulatory clarity.
