The US has cut interest rates for the first time since 2020, from 5.5% to 5.0%. Markets reacted positively to this news, with Bitcoin $62,039caused it to exceed $62,000 this morning.
Details of Interest Rate Cut
This decision comes after discussions on social media about the direction of interest rates 
$0.496648u-cz-blockchain-event-assessed-crypto-regulations”>triggered the rise in the cryptocurrency market. The downward trend in inflation and the slowdown in growth in the US play an important role in Bitcoin reaching new heights.
The U.S. interest rate is now at 5.0 percent, a bigger drop than the 5.25 percent that policymakers had forecast. Here are some key points from the statement released this morning:
The Committee gained greater confidence that inflation is moving sustainably towards its 2% target.
The committee sees further rate cuts in 2024, with most votes between 4.25% and 4.75%. Unemployment is expected to rise to 4.2%-4.5% and GDP expectations are expected to fall to 2.0%-2.1%.
Bitcoin and Cryptocurrency Market’s Reaction to Interest Rate Cut
Bitcoin is trading at $62,000, surpassing its monthly opening price of $58,960 for September. The total value of the cryptocurrency market has also regained $2 trillion.
After the interest rate cut, Bitcoin is moving towards its highest levels in recent weeks. If the rise continues, it is predicted that BTC could approach the $70,000 levels in July.
If buyer interest decreases in the coming days, the current price range may cause a decline. The fear and greed index in the crypto market is currently at 37.
Altcoin Analysis: OM and AAVE
Mantra (OM) could be a sign of a big move as it trades above the Golden Fibonacci ratio of 0.618. An upward move from this level could take the price towards the $1.41 level and then the $1.63 and $1.90 levels.
In case of buyer disinterest, there is a risk that the price will fall below $1.02. A bullish scenario for Aave (AAVE) could also occur if the price finds support at the 0.786 Fibonacci level and rises to $153.72, $176.34 and $205.12.
However, if it fails to attract buyers, the price of AAVE could drop below $135.92.
The US interest rate cut has caused significant movements in both traditional financial markets and cryptocurrency markets. The downward trend in inflation and slowdown in economic growth may lead investors to turn to risky assets. The impact of such macroeconomic developments on cryptocurrencies should be monitored carefully and considered in future investment decisions.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
