Bitcoin holds above $60k amid heavy volatility after FOMC confirms 50bp rate cut Bitcoin holds above $60k amid heavy volatility after FOMC confirms 50bp rate cut
Fed's policy shift prompts Bitcoin volatility but price stabilizes above $60,000 on cautious market sentiment.
2 min read
Updated: Sep. 18, 2024 at 11:48 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin (BTC) experienced heavy volatility on Sept. 19 following the Fed’s FOMC meeting but maintained its position above the $60,000 threshold.
Fed chair Jerome Powell confirmed weeks of speculation by announcing a 50 basis point rate cut after four years of restrictive monetary policy.
According to the press release:
“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”
The policy shift comes after a prolonged period of rate hikes by the Fed, which raised interest rates to combat inflation throughout 2022 and 2023. The decision aligns with other global central banks, such as the European Central Bank, which has also lowered rates this year in response to easing inflation pressures.
Bitcoin holds $60k
Following the Fed’s announcement, Bitcoin initially surged above $61,000, but the momentum reversed within an hour, taking prices below $60,000 before bulls initiated a reversal. Bitcoin traded within a relatively narrow range, with prices finding support around $59,000 and resistance near $61,230.
According to CryptoSlate data, the flagship crypto was trading at $60,469 as of press time, up 0.53% over the past 24 hours.
Despite the brief volatility following the FOMC announcement, Bitcoin has settled into a more stable zone. Key moving averages, including the 7-period moving average (MA) at $60,280.1 and the 99-period MA at $60,075.3, suggest that market sentiment is cautiously neutral.
Despite the current reversal, analysts warn that similar volatility may continue in the coming days. Historical patterns suggest that crypto markets often react strongly to macroeconomic news but may experience corrections as the market digests the longer-term effects.
Altcoins struggle to rebound
Altcoins fared much worse over the day compared to Bitcoin, with most seeing losses and only recovering after the FOMC meeting.
Ethereum (ETH) traded below $2,300 for most of the day before attempting a recovery following the Fed’s announcement. As of press time, ETH was trading at $2,337, down 0.16% over the past 24 hours.
BNB fared a little better, up 0.88% over the past day to trade at $550.05, while Solana (SOL) reversed the day’s losses and was up 0.19% to $131.60.
Meanwhile, XRP was down 0.60% over the period and is currently priced at $0.581, while Dogecoin (DOGE) was trading at $0.1024, up 1.45%.
Toncoin (TON) saw a notable rise of 2.12%, reaching $5.63, whereas Tron (TRX) slipped by 0.54% and is currently valued at $0.1492. Rounding out the top 10, Cardano (ADA) inched up by 1.26% to $0.3375, and Avalanche (AVAX) showed a 0.01% decrease, trading at $23.86.
Bitcoin Market Data
At the time of press 11:48 pm UTC on Sep. 18, 2024, Bitcoin is ranked #1 by market cap and the price is up 0.42% over the past 24 hours. Bitcoin has a market capitalization of $1.2 trillion with a 24-hour trading volume of $39.36 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 11:48 pm UTC on Sep. 18, 2024, the total crypto market is valued at at $2.09 trillion with a 24-hour volume of $80.09 billion. Bitcoin dominance is currently at 57.23%. Learn more about the crypto market ›
Mentioned in this article
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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