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Bitcoin And Crypto Stocks Rise After Fed Rate Cut

Published 2024-09-19, 06:54 a/m
© Reuters.  Bitcoin And Crypto Stocks Rise After Fed Rate Cut
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yolowire.com - Cryptocurrencies are marching higher a day after the U.S. Federal Reserve lowered interest rates by 50-basis points.

The price of Bitcoin (CRYPTO: BTC) is up 5% and trading at $63,000 U.S. per token. It is the highest level that Bitcoin has traded at in three months.

Similarly, Ethereum (CRYPTO: ETH) is up 5% and trading at $2,450 U.S., while Solana’s (SOL) price has risen 8% to $140 U.S. and Bitcoin Cash (BCH) has increased 9% to $340 U.S.

Stocks tied to cryptocurrencies are also surging. Shares of crypto exchange Coinbase (NYSE: NASDAQ:COIN) are up 4%, while Bitcoin acquirer MicroStrategy (NASDAQ: MSTR) stock has gained 5%.

The big move higher comes after the U.S. Federal Reserve lowered interest rates by half a percentage point and forecast more rate cuts in the coming months.

Lower interest rates are seen as beneficial for riskier assets such as cryptocurrencies.

Some analysts expect a big bull run in cryptocurrencies through year’s end as lower interest rates improve liquidity and supports prices.

The jump higher in crypto prices marks a reversal for digital coins and tokens, which have traded sideways throughout the summer.

After rising to an all-time high of just under $74,000 U.S. in March of this year, the price of Bitcoin had been rangebound in recent months and traded between $55,000 U.S. and $59,000 U.S.

With today’s (Sept. 19) rise, Bitcoin is now up 43% on the year.

This content was originally published on yolowire.com

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