50 bps it is... Bitcoin is Strengthening

The first rate cut since March 2020 has taken place, and as forecasted, it was a cut of 0.5%, bringing interest rates down to a range of 4.75%–5%.

For those who were awake at 4 a.m., the volatility was immediate. Within one minute of the cut being confirmed, BTC surged from $59.9k to $61.1k before returning to $59.9k just 12 minutes later.

For those who are just waking up or checking the charts for the first time today, the market has had time to digest the news. BTC has responded positively, currently up 3.5% since the cut confirmation and trading above $62,000 USD.

In conjunction with the interest rate decision, U.S. Federal Reserve Chair Jerome Powell addressed the media, providing insight into the decision-making process and potential future rate cuts.

Key Takeaways from Powell’s Speech:

No rush to get easy monetary policy
Another 0.5% cut is expected; whether it occurs in one cut or two 0.25% cuts remains to be seen.
The Federal Reserve forecasts interest rates to land at 3.4% in 2025, implying a full percentage point of cuts next year, followed by another 0.5% in 2026.
The Fed will stay flexible, with data driving the pace of future rate changes.
Investors should not expect 0.5% cuts to become the norm—the Fed will act based on new data.
“I don’t see anything in the economy right now that suggests that the likelihood of a recession, sorry, of a downturn, is elevated,” - Jerome Powell

Stormrake Spotlight: FANTOM ($0.64)

FTM continues to outperform, up another 12%, bringing it to 27% since our first mention in the Morning Note. Other notable performers include SUI and CKB, which have gained 10% in the past 24 hours.

BTC/USD Key Levels and Price Action:

The 0.5% interest rate cut has sparked a positive reaction in Bitcoin and the broader crypto space. After struggling with the key $60,200 level, BTC has finally cleared it and is now approaching the next resistance at $63,800 with strength and conviction. This target is 3% away, and some resistance is expected as we approach it, likely leading to a small pullback. Any pullbacks should be viewed as buying opportunities, as the short-term trend has flipped bullish while the long-term outlook remains positive.

BTC Total ETF Flows for 18 Sep: $ - 52.7 million(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Ethereum has mirrored Bitcoin’s reaction to the interest rate decision. ETH has reclaimed all its moving averages and is heading towards a target of $2,556. However, it is expected to face strong resistance at this level, which has proven challenging for ETH to overcome in the past month.

ETH Total ETF Flows for 18 Sep: $ -15.1 million

Written by Alexandar Artis

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