- Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points.
- The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
- Ethereum and Solana also retained gains of 7% and 4%, respectively, following the rate cut.
Bitcoin (BTC) and the entire crypto market continued to see gains after the US Federal Reserve (Fed) cut interest rates by 25 basis points (bps) on Thursday.
Bitcoin trades close to $76K after Fed cut interest rate
The Federal Reserve reduced interest rates by 25 basis points on Thursday, a decision aimed at maintaining flexibility as officials navigate a slowing labor market and decreasing inflation rates.
This cut brings the benchmark rate to 4.50% to 4.75%, following a 50 bps cut earlier in September.
After the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell held a press conference and stated that he feels good about the economic activity so far.
"If the economy remains strong and inflation is not sustainably moving toward 2%, we can dial back policy restraint more slowly. If the labor market were to weaken unexpectedly, or inflation was to fall more quickly than anticipated, we can move more quickly,"
The crypto market has remained in the green following the Federal Reserve's decision to lower interest rates.
Historically, Bitcoin and the crypto market have reacted positively to low interest rate environments. When the Fed cuts rates, investors typically have a greater appetite for risk assets, resulting in price surges for cryptocurrencies like Bitcoin.
Currently, BTC is trading just short of its recent all-time high following Donald Trump's victory in the recently concluded US presidential election.
Other top crypto assets rallied alongside Bitcoin as the market continued to trend upward. Ethereum witnessed a 7.3% rise following the announcement, with Solana also seeing gains of 3.5%.
However, Dogecoin is down over 3% amid the meme sector's 15% gain. Other categories that extended their gains include the AI sector, which soared 13.5% and the DeFi sector, with 18% gains.
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