The price fell after the Federal Reserve made its first rate cut since the Covid pandemic, reducing lending rates by half a percentage point, or 50 basis points.
The US central bank has lowered the federal funds rate to a range of 4.75% to 5%. This aggressive cut indicates heightened concerns about the state of the US economy, which has sparked volatility in several markets, including cryptocurrencies.
At 16:40 ET (20:40 GMT), Bitcoin price was flat on the day, trading at $60,189.00. Bitcoin was down 1.1%, trading at $2,138.87, while the price was down about 1.9%.
Cryptocurrency-related stocks lost their earlier gains. While shares of MicroStrategy Incorporated (NASDAQ:) rose 1.5% on the day, most bitcoin miners including Marathon Digital Holdings Inc (NASDAQ:) and Riot Platforms (NASDAQ:), along with cryptocurrency exchange Coinbase Global Inc (NASDAQ:), closed flat to slightly lower.
The rate cut was announced after the Fed's two-day meeting and follows a year of aggressive tightening to combat inflation. Ten of the Fed's 19 officials supported at least another half-point rate cut during the final two meetings of 2024.
Historically, rate cuts have weakened the US dollar and benefited risk assets such as stocks.
Bitcoin has struggled to hold onto the gains it made earlier this year. After hitting highs of $65,000 in August, it has traded close to $60,000 in recent days.
