
- Bitcoin has rallied by 5.6%, peaking at a three-week high of $61.1K on Tuesday morning.
- Other cryptocurrencies, including Celestia, Immutable X, and Near, have experienced remarkable double-digit gains.
- Crypto-related stocks have seen slight increases in the lead-up to the Fed’s anticipated announcement on rate cuts.
Bitcoin has climbed to its highest point in three weeks, sparking gains across the crypto market as well as in related stocks. It jumped 5.6%, reaching $61.1K by 11:55 a.m. ET before settling back to approximately $61k.
This surge signals a dramatic turnaround from the calm start of the week, indicating a renewed appetite for digital assets.
Altcoins and Bitcoin soaring ahead of Fed rate decisions
In addition to Bitcoin, other prominent cryptocurrencies have registered significant increases, with Ethereum (ETH) climbing 4.2% to $2.38K.
Remarkably, several altcoins have outperformed the major tokens. For instance, Celestia (TIA) has surged 15.7%, Immutable X (IMX) is up 14.8%, Near Protocol (NEAR) has climbed 9%, Uniswap (UNI) has risen 8.9%, and Sui (SUI) has gained 8.1%.
This rally occurs just prior to the Federal Reserve’s much-anticipated interest rate decision.
Market experts widely anticipate that the central bank will reduce rates for the first time in four years. Given that inflation is largely under control and the job market is showing signs of softening, many believe that the Fed will pursue a more accommodative approach.
Lower interest rates are generally favorable for cryptocurrencies, as diminished borrowing costs make traditional savings and investment options less appealing. Consequently, investors often gravitate toward riskier assets, such as cryptocurrencies, seeking better returns.
Crypto-focused stocks benefit from the Bitcoin surge
Stocks of companies focused on crypto have also profited from Bitcoin’s upward movement, although their gains have generally been less pronounced compared to the digital tokens.
MicroStrategy (MSTR), a firm known for its substantial Bitcoin holdings, increased by 0.6%.
Coinbase Global (COIN), a cryptocurrency exchange platform, saw a rise of 3%, while crypto investment firm Galaxy Digital (OTCPK) gained 5.4%.
In the cryptocurrency mining sector, Riot Platforms (RIOT) advanced by 2.4%, MARA Holdings (MARA) went up by 1.9%, and HIVE Digital Technologies (HIVE) increased by 4.3%. Notably, Bit Digital (BTBT) experienced the highest jump, soaring by 13%, followed by Hut 8 (HUT) with a 6.6% increase and CleanSpark (CLSK) up by 3.1%.
As the overall stock market also sees increased buying activity in anticipation of the Federal Reserve’s key decision, the cryptocurrency sector continues to benefit from the optimism surrounding the possibility of reduced rates and heightened investment in digital assets.