The Federal Reserve(Fed) is cutting interest rates for the first time in a decade. This policy shift is gasoline for Bitcoin(BTC). The last time Fed lowered interest rates was back in the 2008 financial crisis, and it was the year when the bitcoin whitepaper was released.

A chair of Fed, Jerome Powell said it is cutting the interest rate by 0.25%. In a statement, the Fed pointed out that the U.S. economy has seen steady growth with the unemployment rate remaining low and household spending increasing from earlier in the year.

The agency also noted that inflation is running below 2 percent.

However, the agency still decided to cut the interest rate “in light of the implications of global developments for the economic outlook as well as muted inflation pressures.”

To cut rates, the Fed will increase the supply of US dollars, thus cannibalizing its value. With this cut, the Fed hopes to sustain the expansion of economic activity, although it also cautions that uncertainties remain about this outlook.

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