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The cryptocurrency rose as part of a broader market rally on Thursday, a day after the Federal Reserve cut interest rates by half a percentage point for the first time in more than four years.
The price is Bitcoin Bitcoin recently rose 5% to $63,738.91, according to Coin Metrics, topping a bull run that was underway before Wednesday’s central bank decision. Like stocks, Bitcoin initially surged before falling as traders absorbed the news.
“Bitcoin’s closest correlations are a positive relationship with money growth and a negative relationship with the US dollar,” said Matthew Siegel, head of digital asset research at VanEck. “We think this move from the Fed increases the likelihood that Bitcoin will post strong performance in the fourth quarter.”
ether Its competitor, Solana The token rose by 10%.
Bitcoin rises after Wednesday’s Fed decision
Bitcoin-linked stocks rise. Bitcoin exchange operator Coinbase It increased by 4%. MicroStrategywidely used as a high-beta trade on bitcoin’s price, rose 11%.
Some investors worry that the Fed’s rate cut — just a quarter of a percentage point — suggests policymakers are more worried about the economy than the market is suggesting, while others see easier borrowing costs as encouraging more liquidity, which could support prices.
Bitcoin functions as both a hedge asset and a risk asset, and is currently Nasdaq Composite Index it is gold.
Bitcoin rose 6% in September, typically its lowest price month of the year. But the cryptocurrency isn’t out of the woods yet, said Yuya Hasegawa, a cryptocurrency market analyst at Japanese bitcoin exchange Bitbank. He offered a warning about the outcome of the Bank of Japan’s policy meeting that began on Thursday.
“While the BOJ is likely to keep its policy rate on hold this time, any hint of further rate hikes could push up (the Japanese yen) and trigger an unwinding of the yen carry trade, which could result in a sell-off in Japanese stocks and risk-averse sentiment spreading to the cryptocurrency market,” he said. “Bitcoin still has some time before the BOJ makes a decision and could continue to rise during Thursday’s U.S. session. The next short-term target could be around $65,000.”
