Bitcoin saw its value leap to $61,331 on Tuesday, just a day before members of the U.S. Federal Reserve convene to discuss a potential rate cut for federal funds. While BTC posted a 5% gain, stock markets exhibited mixed signals, hovering near previous highs, and gold dipped more than half a percent that day.
Bitcoin Hits $61K as Fed Rate Cut Bets Divide Investors
Though benchmark indices flirted with record levels in the morning, stocks became somewhat erratic as the afternoon wore on. Of the major players—Russell 2000, S&P 500, Dow Jones, and Nasdaq—only the Russell 2000 and Nasdaq managed an slight uptick by 3 p.m. ET on Tuesday. These Wall Street fluctuations came just ahead of Wednesday’s much-anticipated Federal Open Market Committee (FOMC) meeting.
At this moment, the CME’s Fedwatch tool indicates a 37% likelihood of a 25-basis-point (bps) rate cut, while the odds for a more substantial 50bps reduction stand at 63%. With such close numbers, it’s shaping up to be a real nail-biter. Over on Polymarket, bettors place a 44% chance on the smaller cut and a 55% chance on the bigger one. Meanwhile, the probability of a 75bps cut sits at a mere 1%.
Gold lost some shine on Tuesday, sliding 0.58% to about $2,567 per ounce. Silver followed suit, though with a gentler decline of 0.28%, now priced at $30.62 per ounce. After reaching its intraday peak of $61,207, bitcoin slipped below the $61K mark by 3:45 p.m. ET. As of this writing, the flagship cryptocurrency is trading at $60,338, with a market cap hovering around $1.19 trillion. By 3:50 p.m., BTC was under the $60K mark once again at $59,976 per coin.
What do you think about the market movement on Tuesday the day before the FOMC meeting? Share your thoughts and opinions about this subject in the comments section below.
