The global crypto market turned green after a long period of anticipation building around the expected Federal Reserve rate cuts.
Crypto Market Reacts to Rate Cut
The Federal Reserve reduced interest rates by 0.5%, marking its first cut since the early days of the COVID pandemic. This 50 basis point reduction stood as the largest since 2008. The cumulative crypto market cap gained by almost 3% over the last day to stand at $2.14 trillion. Its 24 hour trading volume spiked by 20% to breach the $91 billion mark.
Bitcoin Hits $62K
As per the data shared by Coinglass, more than 67K traders were liquidated in the last 24 hours as the total liquidations breached $200 million. The largest single liquidation order of BTC/USD valued at $8.93 million happened on Bybit. However, $123.7 million worth of liquidated bets (61%) turned out to be short positions. This suggests that the traders were expecting a crypto collapse over the Fed’s decision but the biggest digital assets printed green indexes. Bitcoin (BTC) recorded a bullish spike after the major rate cut and breached the $62,000 price level.
Altcoins Recover
Ethereum (ETH), struggling due to selling pressure, recorded a surge of around 4% in the last 24 hours. It is trading at an average price of $2,413. Top altcoins like Solana (SOL) and Cardano (ADA) also registered greens. SOL price jumped by 6% while ADA gained by 4.5%. The meme crypto category saw a cumulative surge of 2% as Dogecoin (DOGE) and Shiba Inu (SHIB) each soared by 4%.
The Federal Reserve's rate cut had a positive impact on the crypto market, leading to price increases in Bitcoin and altcoins.
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