Neiro (NEIRO) Leads Meme Coin Surge as Cryptocurrencies Rally After Fed Rate Cut

Meme coins such as Neiro (NEIRO), Billy (BILLY), and Baby Doge Coin (BABYDOGE) were top performers following the announcement.

Cryptocurrency prices soared following the Federal Open Market Committee’s (FOMC) first interest rate cut since 2020, signaling a potential shift in monetary policy. Meme coins, known for their rapid price movements and often influenced by viral internet trends, experienced particularly strong gains.

After the FOMC announcement, Neiro (NEIRO) surged over 120% to reach a new high of $0.00084, far above its monthly low of $0.00036. Intraday trading volume reached an astronomical $794 million, propelling the coin's market capitalization to $354 million. This rally positioned Neiro among the most prominent meme coins in the market.

Another meme coin favorite, Billy (BILLY), enjoyed a 60% surge to reach $0.043, boosting its market capitalization to $32 million. Meanwhile, Baby Doge Coin (BABYDOGE) continued its strong performance following its listing on Binance earlier in the week. The coin experienced another day of high-volume trading, driving its price up further.

The broader cryptocurrency market also experienced gains. Bitcoin (BTC) rose to $60,500, while Ethereum (ETH) increased to $2,300. U.S. equity markets also rallied, with the Nasdaq 100, Dow Jones, and S&P 500 approaching all-time highs.

In a macro development that directly influenced cryptocurrency prices, the FOMC cut interest rates by 0.50%, citing a faster-than-expected weakening labor market. This move was widely anticipated, though some, like Senator Elizabeth Warren, advocated for a larger 0.75% cut.

The unemployment rate remained above 4% in August, while inflation moderated, with the consumer price index (CPI) falling to 2.5%—its lowest level since 2021. This marked the first rate cut since 2020 and highlighted the Fed’s growing confidence in achieving its 2% inflation target.

Economists now anticipate a series of additional 0.50% cuts in the year’s final two meetings.

All eyes now turn to the Bank of Japan’s (BoJ) rate decision, which is set to be announced on Friday. While most economists anticipate no change in rates, the possibility of a hike remains on the table.

A BoJ rate hike, contrasting the Fed’s cuts, could narrow the interest rate differential between Japan and the U.S., potentially disrupting the carry trade strategies that have thrived for years.

In the past, a similar divergence between the Fed and BoJ led to a sharp sell-off in the cryptocurrency market, with Bitcoin notably plummeting during the so-called “Black Monday.”

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