US Crypto Stocks Surge After Fed Rate Cut, Bitcoin Hovers Above $62,000

US-listed crypto shares jumped on September 19, 2024 and continued to rise the following day in the wake of the US Federal Reserve’s 50 basis point (bps) rate cut on September 18. The move has encouraged investors to take on more risk, which has contributed to an upward market trend for Bitcoin and other cryptocurrencies.

The Federal Reserve’s move to decrease interest rates, the first since the Covid-19 pandemic has boosted the crypto market and has increased investor trust in digital assets.

Says Sathvik Vishwanath, co-founder & CEO of Indian crypto exchange Unocoin: “Bitcoin rose 3.03 per cent to $62,138 after the Federal Reserve decided to lower interest rates by 50 basis points. It is likely to improve liquidity and lower risk appetite, which is always good for Bitcoin and other digital assets in a down market. Also, despite receiving $52.83 million in income from US-based Bitcoin exchange-traded funds (ETFs) led by Ark Invest and 21Shares, the market remains bullish. Bitcoin’s rise is consistent with other advances in cryptocurrency, with Ethereum up by 4.14 per cent, and Solana up by 6.21 per cent, signalling restored market confidence.”

Altcoins, Crypto Miners See Significant Gains

Major altcoins, such as Ethereum (ETH) and Solana followed Bitcoin’s upward trend, increasing by 4.14 per cent and 6.21 per cent, respectively. This also demonstrates increasing market optimism, despite uncertainties, as cryptocurrencies have experienced broad gains.

Riot Platforms, Marathon Digital, and CleanSpark have all gained considerably by 5 per cent, 5.8 per cent and 6.1 per cent, respectively. Bitcoin has gained over 7 per cent in the last week, further demonstrating tenacity as prices hovered above $62,000.

Avalanche stood out among altcoins, gaining 9 per cent.

Incidentally, Bitcoin has been stable since reaching an all-time high of roughly $74,000 in March this year. The crypto community is also bullish about its future trajectory and many have predicted steady long-term rise.

Bitcoin is currently is trading at $63,858.03, indicating continuous increase in reaction to the Fed’s measures. With potential rate cuts on the horizon, the outlook for Bitcoin and the broader crypto sector also remains positive. Incidentally, the Federal Reserve has hinted at further rate cuts this year.