Market Shift: Bitcoin Rallies After Fed’s Rate Cut
The cryptocurrency market is abuzz as Bitcoin makes a comeback, rising 0.7% to $101,572 after a brief dip below $100,000. This sudden surge comes on the heels of the Federal Reserve’s announcement on Wednesday, which hinted at fewer interest-rate cuts in 2025 than initially anticipated.
Fed’s Signal Sparks Market Reaction
The Fed’s decision to cut rates by 25 basis points, as expected, sent ripples through the market. However, it was the signal of a slower pace of rate cuts that caught investors off guard. As a result, the dollar strengthened, causing U.S. stocks to stumble.
Bitcoin’s Correlation to Nasdaq 100
According to Kathleen Brooks of XTB, Bitcoin’s strong correlation to the Nasdaq 100 index played a significant role in its initial decline. As the Nasdaq 100 faltered, Bitcoin followed suit, reaching a one-week low of $98,677 overnight. However, the cryptocurrency has since regained its footing, much to the relief of investors.
A New Chapter for Bitcoin?
As the market continues to digest the Fed’s announcement, all eyes are on Bitcoin’s next move. Will this recent rally mark the beginning of a new chapter for the cryptocurrency, or is it simply a temporary reprieve? One thing is certain – the coming days will be filled with excitement and uncertainty for Bitcoin enthusiasts.
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