Bitcoin Soars Back to $116K as Fed Decision Looms
Ethereum (ETH) slipped 0.2%, dipping below $4,500. Across the altcoin space, momentum was broadly positive.
Quick overview
- Cryptocurrencies experienced a bullish trend on September 16, with Bitcoin rising 1.3% to $116,500.
- Ethereum saw a slight decline of 0.2%, while altcoins like BNB and Solana posted gains.
- Markets are anticipating a Federal Reserve rate cut, though historical patterns suggest it may not lead to immediate stock market gains.
- Traditional markets faced a pullback, with European stocks correcting sharply amid political uncertainty in France.
Cryptocurrencies traded with a bullish tone on Tuesday, September 16, as investors anxiously await the Federal Reserve’s decision on interest rates and Fed Chair Jerome Powell’s press conference on Wednesday.
Bitcoin (BTC) climbed 1.3% over the past 24 hours to $116,500, according to Binance. Ethereum (ETH) slipped 0.2%, dipping below $4,500. Across the altcoin space, momentum was broadly positive, with BNB up 3.6%, Solana gaining 2.4%, and XRP advancing 1.4%. TRON was the exception, edging down 0.3%.
Nerves Ahead of the Fed
Markets are bracing for what is widely expected to be a rate cut by the Fed, though analysts caution that history shows such decisions don’t always translate into immediate stock market gains. “It is almost certain the Federal Reserve will cut rates on Wednesday, but historical patterns do not guarantee that this will result in short-term gains for equity indices.
In theory, a gold bull market should support Bitcoin in the medium term, as BTC tends to lag the precious metal by roughly three months.
Traditional Markets
Unlike the upbeat start to the week, Wall Street slipped on Tuesday. The pullback came even as major tech names continued to show strength, with investors awaiting the outcome of the Fed’s Federal Open Market Committee (FOMC) meeting.
In Europe, stocks corrected sharply. The Euro Stoxx 50 fell 1.22%, Germany’s DAX lost 1.79%, and France’s CAC dropped 1%. Investors are closely watching France after the resignation of Prime Minister François Bayrou, a development that could bring political uncertainty in the coming days.
In Asia, trading was mixed: Shanghai’s Composite Index edged up 0.04%, the Hang Seng in Hong Kong slipped 0.03%, and Japan’s Nikkei 225 rose 0.32%.
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