Key Points
- Bitcoin price surged above $60,000 ahead of today’s FOMC meeting.
- Chances of a 50 bps interest rate cut in the US have risen to 53%.
Bitcoin’s price surged above $60,000 ahead of the important FOMC meeting today.
At the moment of writing this article, BTC is trading above $60,000, up by over 3% in the past 24 hours.
On September 17, BTc’s price spiked and surged over $61,000 ahead of a slight correction.
Yesterday marked the fourth consecutive day in which BTC ETFs recorded positive flows at almost $187 million, according to official data from SoSoValue.
Bitcoin ETFs Record 4th Consecutive Inflow Day
Fidelity’s Bitcoin ETF, FBTC was the inflow leader with $56.6 million in influxes, followed by Ark Invest and 21Shares’s Bitcoin ETF, ARKB, which recorded inflows of over $42 million.
BlackRock’s IBIT, along with Grayscale’s BTC ETFs, did not see any inflows or outflows yesterday.
This was a positive week for the US-based crypto products with consecutive inflow days. The most significant day was September 13 when the BTC ETFs recorded $263 million in inflows the highest day since July 31.
After starting the week at $59,000, BTC recorded a dip close to $57,000 levels on September 16, ahead of a reversal.
Today is an important day, marking the FOMC meeting, and we might see significant interest rate cuts. The results could also affect Bitcoin‘s trajectory forward.
Odds Of a 50 bps Rate Cut Reach 53%
As CNBC noted, contrary to fears of a potential recession in the US, the latest retail sales data showed strong consumer spending ahead of today’s Federal Open Market Committee (FOMC) meeting. However, the 2007 rate-cutting cycle also began on the same day, three months before the Great Recession.
According to official reports, US retail rose by 0.1% in August, defying economists’ expectations of a 0.2% decline.
Now, global markets await the first rate cut by the US Fed since 2020 as inflation has been moving closer to the Fed’s target of 2%.
Also, the odds of a 50 bps rate cut today have hit a new high at 53%, according to Kalshi.
According to CNBC‘s predictions, a cut in benchmark interest rates will bring down the cost of borrowing for companies in the US, while sending a signal to more central banks scheduled to review their monetary policy during this week.
