Fed rate cut sparks Bitcoin surge, China follows
The Fed’s 50 basis point rate cut sparked a 5.2% Bitcoin surge, while China’s easing had little impact. U.S. monetary policy continues to drive crypto markets.

The Fed’s 50 basis point rate cut sparked a 5.2% Bitcoin surge, while China’s easing had little impact. U.S. monetary policy continues to drive crypto markets.
With central banks worldwide shifting towards easing policies, Bitcoin has shown a stronger reaction to the U.S. Federal Reserve’s rate cuts than to similar actions by the BoE, ECB, or PBoC. While easing measures may offer short-term relief, their broader impact on the cryptocurrency market remains closely tied to U.S. economic developments.
On September 19, Forbes reported that BlackRock recently revealed that they are quietly preparing for a $35 trillion debt crisis - a crisis that is expected to trigger a surge in Bitcoin prices.
Investors may face volatility in the short term, but those who firmly believe in Bitcoin as a decentralized, sound monetary system will view today’s rate cut as a step toward further validation of its long-term value.
Bitcoin rises to around $65,000, influenced by the upcoming US PCE inflation data and the Fed's hint of a rate cut
This is the first rate cut by the bank in more than four years, with the last cut occurring in March 2020.
Bitcoin dips briefly before rebounding; gains driven by China's rate cut and U.S. market anticipation.
At first glance, the Fed's rate cut may seem like a bullish signal, but that is not the case.
The European Central Bank (ECB) is expected to cut its interest rate by 0.25% to 4.25% on June 6. This rate cut could boost investor interest in risk assets like Bitcoin. Bitfinex's derivatives head, Jag Kooner, told Cointelegraph: "The ECB is expected to cut rates next week to stimulate economic growth. Lower rates typically weaken the euro and increase liquidity, which can boost risk assets, including Bitcoin."
Morgan Stanley's Ellen Zentner forecasts a series of interest rate cuts by the FED, deviating from market expectations. Beginning in June, the predicted reductions may impact Bitcoin's trajectory, potentially influencing a return to previous highs.