Bitcoin volatility spikes as FOMC confirms 25 basis-point rate cut for September

Bitcoin (BTC) floated on 17 September after the Federal Reserve had confirmed a reduction of 25 basic points interest rate, which reduced the target range for the federal fund rate to 4% to 4.25%.

The decision Also reduced the interest rate paid on reserve balance to 4.15% and reduced the primary credit rate to 4.25%, both in force on 18 September.

The FED said that the open market agency of the New York Fed Open market activities will carry out the new range, including up to $ 500 billion overnight in the night return agreements and a daily limit of $ 160 billion per container on reverse repos.

Based on CryptoSlate data, Bitcoin rose to an intraday highlight of $ 116,318 prior to the statement before he sharply reversed to $ 114,820 while traders “sold the news”.

The decline was violent but short -lived, with Bitcoin back to $ 115,639 from the moment of the press.

The rapid fluctuations emphasize how digital assets remain very sensitive to changes in dollar liquidity and fed policy.

The rate reduction was generally expected, but marked the first policy adjustment of the FED in months after the loan costs were increased. Markets had priced in the decision, although the speed of Bitcoin’s response emphasized how traders position the placement of shifts in monetary conditions.

Investors are now waiting for chairman Jerome Powell’s press conference later for further guidelines on whether the central bank could deliver extra cuts before the end of the year.

Shares also saw volatility after the announcement, while the Treasury yields were lower as bond markets priced in looser financial circumstances. The excessive movements of Bitcoin reflect wider risk -sentiment but with sharper intraday swings.