Krutika Adani
The price of Bitcoin increased 4.35% in the last 24 hours after the US Fed cut interest rate by 0.5%.
A rate cut of 0.5% helped Bitcoin regain its critical levels and is expected to support its price cross $73k levels within 2024.
After an interest rate cut, the borrowing activity increases in the economy, generating more jobs and, hence, more employment. Higher employment rates lead to higher investments, thereby lifting the price of stocks and crypto.
A policy rate cut has a long-term impact on the markets and generally sustains any market rallies that take place after such a cut. This is because a rate cut introduced a sustained injection of liquidity into the markets.
Bitcoin needs to hold the $62k level to make further gains. On the downside, the $60k level remains important support.