Bitcoin reclaimed the $60,000 mark on Tuesday as investors eagerly awaited the Federal Reserve’s announcement regarding its rate cutting plans.
The price of the flagship cryptocurrency surged by 4.3% to $60,394.41, according to Coin Metrics. At its peak, Bitcoin reached $61,335.83. The initial price surge was fueled by the announcement of former President Donald Trump’s new crypto venture, World Financial Liberty Coin.
As the Federal Reserve began its two-day policy meeting, Bitcoin breached the $60,000 level. The market is widely expecting the central bank to cut interest rates for the first time in four years, which could positively impact risk assets like Bitcoin.
Philipp Pieper, co-founder of Swarm Markets, predicted that Bitcoin might experience a short-term pullback following the announcement of a Fed rate cut. However, he emphasized the long-term benefits of easing monetary conditions for Bitcoin, Ethereum, and the broader cryptocurrency market. Pieper noted that Bitcoin’s price has historically correlated with major tech indices like the Nasdaq and tends to move in line with monetary conditions as investors seek higher yields in lower-rate environments.
The market remains divided on whether the Fed will reduce rates by 25 or 50 basis points. Currently, traders are pricing in a 63% probability for a 50 basis point rate cut, according to CME Group’s FedWatch Tool.
