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Bitcoin price climbs above $117K after Fed interest rate cut - YAHOO FINANCE
Bitcoin (BTC-USD) extended gains on Thursday after the Federal Reserve cut interest rates by 25 basis points, its first reduction in nine months.
The world’s largest digital asset (BTC-USD), climbed above $117,000 (£85,840) on Thursday, its highest level since August 17. The move ended a week-long sideways trend and lifted the broader crypto market following the Federal Reserve’s dovish policy shift.
Read more: Crypto live prices
Investors closely parsed Fed chair Jerome Powell’s remarks, which hinted at the potential for more rapid monetary easing over the next year.
On Wednesday, the Federal Open Market Committee (FOMC) voted 11-1 to cut interest rates by 25 basis points, with Trump ally Stephen Miran dissenting in favor of a deeper half-point cut. The Fed’s latest projections point to two more cuts this year, which would bring the federal funds target range down to 3.50%–3.75% by December.
October is historically a strong month for bitcoin
Crypto investors highlighted the seasonal pattern that often favours bitcoin during this stretch of the annual calendar.
“Since 2020, every September FOMC (except during the 2022 bear) has set bitcoin (BTC-USD) up for a massive pump,” entrepreneur and bitcoin investor Lark Davis wrote on X. “It’s less about the decision itself, and more about seasonality. Bitcoin thrives in this stretch. Uptober is real.”
Read more: How bitcoin could be used as collateral for UK mortgages
Ethereum (ETH-USD) gained 1% over the past 24 hours, but still remains trapped in a four-week band under the $4,900 mark.
Other major cryptocurrencies have advanced, with dogecoin (DOGE-USD) and Binance’s BNB (BNB-EUR) token both up more than 4%, while XRP (XRP-USD) rose nearly 3% following a bullish breakout pattern.
Solana briefly topped $245, rising by almost 4% as optimism grew around CME Group’s plan to launch SOL and XRP options on October 13, a move seen as opening the door to greater institutional involvement.
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Ethereum USD (ETH-USD)
Still, not all observers were convinced the Fed’s latest cut was a clear positive. “The weakening labor market ultimately convinced the FOMC to cut the rate, but this decision is not a clear positive with recent data showing inflation well above the Fed’s 2% target,” said Jai Kedia, research fellow at the Cato Institute. “Monetary policy rules would advocate keeping rates steady or even a minor increase.”
Fabian Dori, head of investments at Sygnum Bank, cautioned that the path ahead remains uncertain: “The underlying dynamics remain complex. The US labor market has weakened, but inflation remains sticky, while recent PMI readings point to a re-acceleration in business activity. Meanwhile, producer price inflation is easing again, creating conflicting signals.”
