Cryptocurrencies surged significantly after the Federal Open Market Committee (FOMC) slashed interest rates for the first time since 2020 and hinted at further cuts.
Rate Cuts and Market Reaction
The FOMC cut interest rates by 0.50%, indicating a faster-than-expected deterioration in the labor market. Data showed that the unemployment rate remained above 4% in August, while U.S. inflation dropped to 2.5%, the lowest since 2021. Economists now anticipate two more 0.50% rate cuts this year. The FOMC stated: "The Committee is confident that inflation is moving sustainably toward 2%, and judges the risks to achieving its employment and inflation goals as roughly balanced."
Meme Coins' Growth
Meme coins like Neiro, Billy, and Baby Doge Coin were among the best performers. Neiro surged 120% to a record high of $0.00084, with a market cap of $354 million. Billy jumped 60% to $0.043, bringing its market cap to $32 million. Baby Doge Coin continued its upward trend with high trading volumes following its recent listing on Binance.
Impact on Major Cryptocurrencies
Bitcoin reached $60,500, and Ethereum climbed to $2,300. U.S. stock indices also rallied, with Nasdaq 100, Dow Jones, and the S&P 500 nearing their all-time highs.
The next key macro event is the Bank of Japan's decision on Friday. Economists expect the BoJ to leave interest rates unchanged, but a possible hike could narrow the interest rate gap between Japan and the U.S.
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