The prices of leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) are down after the U.S. Federal Reserve delivered its highly-anticipated interest rate cut.
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Most of the major cryptocurrencies were down about 2% after the U.S. central bank lowered its benchmark Federal Funds Rate by 25 basis points, taking it to a range of 4% to 4.25%. The quarter percentage point reduction was widely expected by economists and investors.
Bitcoin’s price had been trending higher leading into the rate cut announcement by the Federal Reserve, trading above $116,000 early on Sept. 17. However, shortly after the rate cut was announced, the price of BTC slipped to $114,000.
Ups and Downs
September is typically the worst month of the year for Bitcoin and other cryptocurrencies, leading some commentators to label the month “Red September.” The final month of the third quarter is certainly volatile when it comes to crypto prices.
BTC has seen its price fall from a record high above $124,000 in mid-August to below $110,000 in recent trading sessions. The price had been gaining ground leading into the Fed rate cut, before reversing course. The drop in crypto prices after the central bank’s interest rate decision mirrors stocks, notably shares of technology companies, with the Nasdaq (NDAQ) index down about 1%.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 10.06% in the last 12 weeks.
