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The Federal Reserve announced an interest rate cut of 25 basis points, bringing the new target range to 3.50% – 3.75%.
1️⃣ Lower Interest Rates
Cutting rates means borrowing is cheaper, encouraging people to invest in assets like Bitcoin instead of keeping money in banks. Research shows that a 1% decrease in the interest rate has historically been associated with a 13.25% to 21.20% increase in Bitcoin’s price
2️⃣ End of Quantitative Tightening (QT)
The Fed stopped its liquidity-draining program, meaning more money is available for risk assets like Bitcoin.
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