The cryptocurrency market witnessed a significant surge following the Federal Reserve’s substantial interest rate reduction.
Bitcoin (BTC) led the charge, climbing above the critical resistance level of $63,000 for the first time since August 27.
Leading Gains: Reef, First Neiro on ETH, and Solar (SXP)
The majority of substantial gains were seen in smaller altcoins. Reef (REEF) experienced explosive growth, peaking at $0.0048, its highest level since March 12. This altcoin has emerged as one of the top performers this month, skyrocketing over 670% from its lowest figure and elevating its market cap to over $102 million.
Reef, which stands for reliable, extensible, efficient, and fast, surged just a month after Binance removed it from its exchange. This suggests it may be undergoing a short squeeze, with most of its trading occurring on Gate.io and WhiteBIT.
First Neiro on ETH (NEIRO) has also ranked among the best-performing coins this month, reaching a record high of $0.00098, a staggering increase of over 3,865% from its lowest point in September.
Other notable performers in this crypto resurgence include Solar (SXP) and Billy (BILLY), both of which have surged by more than 50%.
This upward price movement mirrored trends in other asset classes. In the stock market, key indices like the Dow Jones and Nasdaq 100 increased by over 1%, sustaining the bull market that has been evident in recent months.
Federal Reserve’s Major Rate Cut
The rally was triggered by the Federal Reserve’s decision to reduce interest rates by 0.50%, aligning with the expectations of many analysts. The Fed also signaled the possibility of more cuts should the labor market show signs of continued weakness.
Many cryptocurrency analysts are confident that the current rally has momentum. Ki Young Ju noted that the cryptocurrency bull run is still in progress. In another post on X, Ju, founder of CryptoQuant, observed that institutional investors have stopped shorting Bitcoin.
Moreover, spot Bitcoin ETFs have experienced inflows for five consecutive days, suggesting that institutions are likely capitalizing on the dip. According to Santiment, the crypto sentiment continues to rise, serving as a positive catalyst for the sector.
As previously reported by crypto.news, the crypto fear and greed index has shifted from the fear zone, reaching its highest level in weeks. Historically, altcoins tend to perform well during periods of bullish sentiment in the index.
