- Bitcoin’s price has increased by 5.6%, reaching a three-week peak of $61.1K on Tuesday morning.
- Notable altcoins like Celestia, Immutable X, and Near have experienced double-digit growth.
- Stocks related to cryptocurrencies have edged up modestly in anticipation of the Fed’s rate cut announcement.
Bitcoin has surged to its highest point in three weeks, experiencing a substantial increase of 5.6% and hitting $61.1K by 11:55 a.m. ET, before slightly retracting to around $61K. This rally signifies a marked shift from a slow start to the week, reflecting renewed enthusiasm for digital assets.
Altcoins Experience Notable Gains Ahead of Fed Decisions
In addition to Bitcoin’s impressive performance, several major cryptocurrencies have also recorded significant gains. Ethereum (ETH) increased by 4.2% to $2.38K.
Some altcoins have considerably outperformed larger cryptocurrencies, including:
- Celestia (TIA) up by 15.7%
- Immutable X (IMX) rising by 14.8%
- Near Protocol (NEAR) gaining 9%
- Uniswap (UNI) appreciating by 8.9%
- Sui (SUI) increasing by 8.1%
This rally aligns with the Federal Reserve’s forthcoming crucial decision on interest rates.
Market experts widely anticipate that the Federal Reserve is likely to lower rates for the first time in four years. This expectation is driven by manageable inflation levels and a cooling labor market, prompting speculation that the Fed may adopt a friendlier monetary policy.
Lower interest rates are generally seen as favorable for cryptocurrencies, as they tend to make traditional savings and investments less appealing, driving investors toward riskier assets like cryptocurrencies for potentially higher returns.
Crypto-Related Stocks Respond Positively
Bitcoin’s ascent has positively influenced crypto-related stocks, albeit with more modest gains compared to digital currencies. Notable stock movements include:
- MicroStrategy (MSTR) increased by 0.6%.
- Coinbase Global (COIN) saw a 3% rise.
- Galaxy Digital (OTCPK) gained 5.4%.
In the crypto mining sector, significant advances were noted, such as:
- Riot Platforms (RIOT) up by 2.4%
- MARA Holdings (MARA) increasing by 1.9%
- HIVE Digital Technologies (HIVE) rising by 4.3%
- Bit Digital (BTBT) leading with a 13% surge
- Hut 8 (HUT) with a 6.6% increase
- CleanSpark (CLSK) up by 3.1%
Meanwhile, the broader stock market is experiencing upward trends as investors await the Federal Reserve’s pivotal decision. The crypto sector is benefiting from this positive sentiment, anticipating lower rates and increased investments in digital assets.