Bitcoin Surges to 626K After Feds Crisis Action Triggers US Stock Market Alert

Bitcoin aimed to establish $62,000 as a strong support level on September 19 following a rare 0.5% interest rate cut by the United States Federal Reserve. BTC/USD reached three-week highs after the Fed’s announcement, which marked only the third time in history that a rate-cutting cycle began with a 0.5% reduction. This move resulted in the liquidation of short BTC positions across exchange order books, with a total of $128 million liquidated within 24 hours. Traders were advised to reduce leverage or take profits and not to get carried away. Despite earlier predictions of BTC reaching $64,000, significant resistance prevented bulls from achieving this target. Meanwhile, the US dollar experienced volatile conditions, initially rising before returning to prior support. In the upcoming days, attention will shift to the Bank of Japan’s rates decision, as the strength of the yen is expected to influence BTC price performance. The Kobeissi Letter warned risk-asset traders about the potential losses for US equities that can occur during rate-cutting cycles starting with a 0.5% decrease. The letter questioned why the Fed chose to begin this time with a 0.5% cut if historical crises were typically accompanied by smaller cuts. Data from CME Group’s FedWatch Tool indicated that another 0.5% cut is less likely at the Fed’s next meeting on November 7 compared to a 0.25% follow-up. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.