Bitcoin’s (BTC) price has risen above $60,000 U.S. as markets brace for the first interest rate reduction in the U.S. in four years.
Bitcoin was marching higher hours before the U.S. Federal Reserve was expected to lower interest rates for the first time since before the Covid-19 pandemic struck in 2020.
The largest cryptocurrency by market capitalization rose 4% in Asian trading and was at $60,400 U.S., according to market data. At one point, Bitcoin was as high as $61,335 U.S.
Bitcoin and other risk assets, such as stocks, are expected to benefit from lower interest rates, with the U.S. central bank widely expected to announce its first cut today (Sept. 18).
Markets have fully priced in a rate reduction at the conclusion of the U.S. Federal Reserve’s latest policy meeting, with traders placing 60% odds on a 50-basis point cut.
The rise above $60,000 U.S. is seen as positive for Bitcoin, whose price has largely been rangebound since the spring.
After hitting an all-time high of just under $74,000 U.S. in March of this year, Bitcoin traded in a range of $50,000 to $59,000 U.S. over the summer months.
Despite trading largely sideways since July, Bitcoin’s price is still up 35% year to date.
