Cryptocurrencies rose after the Federal Open Market Committee cut interest rates for the first time since 2020 and hinted that more cuts were on the way.
Meme coins like Neiro (NEURO), Billy (CLUB) and the Baby Doge coin (Baby-dog) were among the best-performing coins after the decision.
Neiro surged by over 120% and hit an all-time high of $0.00084, significantly higher than this month’s low of $0.00036. Its intraday volume increased to $794 million, while its market cap rose to $354 million.
Billy, another popular small-cap meme coin, surged 60% to $0.043, bringing its market cap to over $32 million. Baby Doge Coin, which surged on Monday after being listed by Binancecontinued the uptrend in a high volume environment.
Other major coins also continued to rise, with Bitcoin (Bitcoin) moving to $60,500, and Ethereum (Ethnicity) rising to $2,300. US stocks also rose, with the Nasdaq 100, Dow Jones and S&P 500 indexes nearing their all-time highs.
The Federal Reserve cut rates as the economy cools
In its decision, the FOMC cut interest rates by 0.50%, warning that the labor market was deteriorating faster than expected. This move was in line with most analysts’ predictions. Polymarket Userswhile Elizabeth Warren had called for a cut of 0.75%.
Recent data showed that the unemployment rate remained above 4% in August. US inflation has also moderated, with the latest report showing that headline consumer price index The interest rate fell to 2.5% in August, the lowest level since 2021. Economists now anticipate a series of 0.50% rate cuts over the final two meetings of the year. The FOMC statement saying:
“The Committee has gained confidence that inflation is moving sustainably toward 2 percent, and it views the risks to achieving its employment and inflation objectives as roughly balanced.”
The latest Fed cuts triggered a strong rally in the cryptocurrency market, with Bitcoin soaring to an all-time high of $68,000 in 2021.
The next major macroeconomic event will come on Friday, when the Bank of Japan (BoJ) announces its decision. Although economists expect the BoJ to leave interest rates unchanged, there is a possibility that it will raise them, as it did at the previous meeting.
A BoJ rate hike when the Fed is cutting rates could narrow the interest rate differential between the two countries and invalidate the carry trade that has prevailed for years. The divergence between the Fed and the BoJ previously triggered a Cryptocurrency Black Monday, which pushed Bitcoin to its lowest point in months.
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