Immediately after the US Federal Reserve announced its decision to cut its key lending rate by half a percentage point, the Bitcoin market touched a monthly high.

The Bitcoin market experienced a surge on Wednesday following the US Federal Reserve's decision to lower its key lending rate by half a percentage point. BTC price touched a monthly high during the session.

After reaching a peak of $62,360.33, BTC price slipped and was last seen trading at around $61,783 with a gain of 2.8%.

The Federal Reserve was widely expected to consider a rate cut, with Chair Jerome Powell even openly hinting at the plan. However, there was uncertainty over one aspect – whether it would be a 25 basis points cut or a 50 basis points cut.

In the end, many were surprised when the Federal Reserve opted for an aggressive 50 basis points cut over a conservative 25 basis points cut. Some even warned of the possibility of fueling inflation.

As expected, traditional assets felt the heat of the move, with some major US stock indices closing far below their opening.

However, risky assets, like Bitcoin, responded very optimistically.

Bitcoin Price Analysis: A General Overview

In the last 24 hours, the Bitcoin market has experienced an increase of at least 2.8%. At the beginning of this month, the price was only $58,977.11. It slipped to the monthly low of $53,973 on September 6. However, since September 7, the price has been consistently growing.

Although it experienced a negative fluctuation between September 14 and 16, buyers took control of the market on September 17. Right now, what we see in a daily chart of Bitcoin is the last three strong bullish candlesticks pushing the price aggressively upward, far beyond the level of $60,000.

US Fed Fund Interest Rate: A Historic Analysis

The US Fed Funds Interest Rate was around 5.5% in August this year. It saw rapid growth between February 28, 2022, and July 26, 2023. At the beginning of that momentum, the rate was just 0.25%. When the momentum settled, it took the rate to a peak of 5.5%.

The rate remained unchanged until the Federal Reserve finally decided to bring down the rate by half a percentage on Wednesday. Now, the rate stands at 5%.

Interestingly, this is the first time since March 2020 that the Federal Reserve has implemented a rate cut. On Jun 19, 2019, the rate was at 2.5%. It was brought down to 1.75% in January 29, 2020, and later was sharply reduced to just 0.25% in March 15, 2020 – probably as a part of an effort to fight the pandemic.

Anyway, the new move by the Federal Reserve is an opportunity for risky assets to accelerate their performance. Certain assets like Bitcoin have already shown the first signs of growth, which could influence future Bitcoin price predictions.

Also Check Out: Buy, Hold, or Sell: Solana (SOL) and Cardano (ADA) Price Fail To Break Trend!

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