Fed Cuts Rates More Than Expected, Bitcoin Surges 6%! Trump Appears at Bitcoin Bar, Declaring "Bitcoin is Really Happening!"

Fed Cuts Rates More Than Expected, Bitcoin Surges 6%! Trump Appears at Bitcoin Bar, Declaring "Bitcoin is Really Happening!"At 8 pm on September 19th, market data showed Bitcoin's intraday gains expanded to 6%, reaching a high of $63,300. As of press time, gains have narrowed slightly with the latest trading price at $62,996

Fed Cuts Rates More Than Expected, Bitcoin Surges 6%! Trump Appears at Bitcoin Bar, Declaring "Bitcoin is Really Happening!"

At 8 pm on September 19th, market data showed Bitcoin's intraday gains expanded to 6%, reaching a high of $63,300. As of press time, gains have narrowed slightly with the latest trading price at $62,996.4. The Bitcoin surge triggered by the Federal Reserve's interest rate decision is undoubtedly the market's focal point.

The Fed lowered the target range for the federal funds rate by 50 basis points to 4.75% - 5.00%. This rate cut exceeded the expectations of most institutions, leading to significant market volatility. Bitcoin prices jumped from $60,000 to $61,400 immediately after the Fed's announcement, but pared back all gains within the next two hours. As of 8 am on the 19th, Bitcoin prices rallied over 3% for the second time that day, surpassing $62,000. After 10 hours of narrow fluctuations, Bitcoin prices surged again at 9 pm on the 19th, reaching a high of $63,368.

Coinglass data shows that the crypto market witnessed over $201 million in liquidations in the past 24 hours, involving nearly 67,000 users. Due to the rapid rise in Bitcoin prices, short positions accounted for over 72% of liquidations.

The Fed's rate cut has boosted market sentiment, leading to gains across risk assets. After the US stock market opened on Thursday, blockchain-related stocks strengthened, with MicroStrategy rising over 6% and Coinbase gaining over 4%. Caroline Mollen, co-founder of OrbitMarkets, a provider of digital asset derivative trading liquidity, said: "The positive start to the easing cycle is good news for risk assets, including Bitcoin. The market needs several hours to get a clear picture and start reflecting the improved outlook."

It's worth noting that the Fed's decision to cut rates by 50 basis points exceeded the predictions of many institutions. According to incomplete statistics, four hours before the rate decision, most organizations, including Morgan Stanley, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, Barclays, HSBC, UBS, Macquarie, Deutsche Bank, and Bank of Montreal, expected a 25 basis point rate cut. Only a few, like JPMorgan Chase and Mitsubishi UFJ Financial Group, anticipated a 50 basis point cut.

With the Fed's latest rate decision settled, investors in the crypto market are starting to focus on factors beyond interest rates. David Lauvant, head of research at crypto financial services company FalconX, said: "From now on, the most important thing to watch will be the trajectory of economic activity." Lauvant pointed out that the correlation between cryptocurrencies and traditional investments like stocks has recently increased significantly, indicating that macroeconomic variables have been influencing the crypto market.

On the other hand, former US President Donald Trump made headlines in the crypto market today. Shortly after the Fed announced its latest rate decision, Trump appeared at PubKey, a Bitcoin-themed bar near New York University on the afternoon of the 19th. According to PubKey co-founder Drew Armstrong, Trump spent $998.70 on dozens of burgers and gave them to many customers at the bar. He also said that Trump used a payment app called Strike, which supports crypto payments, to settle the bill.

Armstrong said that after entering the bar, Trump shouted, "Who wants a burger?" Later, Trump also said, "Bitcoin is really happening!" As the Republican candidate for the US presidency, Trump has been courting the crypto market, repeatedly expressing support for Bitcoin in public. In July, Trump delivered a keynote speech at the Bitcoin 2024 convention in Nashville, promising to appoint crypto-friendly regulators and establish a national strategic Bitcoin reserve if he returns to the White House. He has also live-streamed on social media to promote a project called WorldLibertyFinancial, dubbed a decentralized finance crypto project that aims to compete with traditional banks.

Trump's actions have sparked widespread attention, with people speculating on the motives behind them. Some believe that this is Trump attempting to win support from the crypto community to pave the way for his return to the White House. Others argue that it's simply a reflection of Trump's personal interest in cryptocurrencies.

Regardless of the motivations, Trump's appearance has undoubtedly added a touch of drama to the already volatile crypto market. With the positive news of the Fed's rate cut and Trump's "blessing," whether Bitcoin can maintain its upward momentum remains to be seen.