Bitcoin surges amid growing expectations of a Fed rate cut
Cryptocurrency market rallies as traders anticipate a Federal Reserve interest rate reduction, boosting demand for speculative assets.
Bitcoin jumped 6.4% to $61,337, its biggest one-day rise since August, driven by hopes of a Fed rate cut.
Bitcoin saw its strongest daily surge in over a month as growing expectations of a Federal Reserve rate cut fueled demand for speculative assets.
The price of the world's largest cryptocurrency soared 6.4% to $61,337 on Tuesday before trimming its gains, marking its biggest one-day jump since August 8. Smaller cryptocurrencies, including Ether, Dogecoin, and Solana, also rallied.
Market sentiment suggests a 55% chance that Federal Reserve policymakers will cut interest rates by 50 basis points on Wednesday, with traders fully expecting a quarter-point reduction.
What’s driving Bitcoin’s rise?
Shellyang Tang, head of trading at Arbelos Markets, told Bloomberg, “The recent strengthening correlation between cryptocurrencies and traditional markets is contributing to Bitcoin’s upward momentum.”
Tang also noted that MicroStrategy’s announcement on Monday to sell convertible securities to acquire more Bitcoin is fueling optimism.
Since hitting a record high of around $74,000 in March, Bitcoin has been trading within a relatively narrow range.
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