The Fed significantly cut interest rates by 50 basis points, and Bitcoin broke through $62000 to reach a new high.

The Fed announced a significant decision after the monetary policy committee meeting held on Wednesday, September 18. They lowered the target range for the federal funds rate from 5.25%-5.50% to 4.75%-5.0%, a decrease of 50 basis points. This decision has sparked widespread attention and discussion in the market.

An industry analyst shared his insights on this. He believes that this marks the end of a difficult period and that new market opportunities are on the horizon. The Fed's significant interest rate cuts reflect their concerns about the current economic situation and aim to initiate a rate-cutting cycle in a more aggressive manner. Recently, the global economy has generally faced liquidity challenges, and this interest rate cut decision has injected new vitality into the global financial markets.

In this context, Bitcoin, known as "digital gold", has performed strongly, breaking through the 62000 USD mark in the short term. It is worth noting that not only Bitcoin benefits; the entire cryptocurrency market is expected to usher in a new round of rising trends in a loose monetary policy environment. However, unlike traditional markets, Bitcoin's performance is more influenced by the liquidity of the US dollar rather than changes in the US economic outlook. This means that in the future loose monetary environment, Bitcoin may continue to be one of the preferred assets for investors to hedge against inflation and seek safe havens.

With the continued decline in interest rates, the cryptocurrency market may enter a prolonged upward channel. Although market volatility still exists, this round of cryptocurrency trends is expected to attract more funds and innovations into the field, driving the entire crypto ecosystem into a new stage of development. Investors and market participants should closely follow the subsequent developments and weigh the risks against the opportunities.