The cryptocurrency rose as part of a broader market rally on Thursday, a day after the Federal Reserve cut interest rates by half a percentage point for the first time in more than four years.
The price is Bitcoin Bitcoin recently rose 3.5% to $62,417.48, according to Coin Metrics, capitalizing on a rally that was underway before Wednesday’s central bank decision. Like stocks, Bitcoin initially surged before falling as traders absorbed the news.
etherhas struggled to outperform Bitcoin in recent weeks, but is up nearly 5%. Its main competitor, Solana The token rose 7.5%.
Bitcoin rallies following Wednesday’s Fed decision
Bitcoin-linked stocks rise. Bitcoin exchange operator Coinbase It increased by 5%. MicroStrategywidely used High Beta Play Bitcoin prices rose 7%.
Some investors worry that the Fed’s cut in interest rates — just a quarter of a percentage point — suggests policymakers are more worried about the economy than the market is suggesting, while others see easier borrowing costs as encouraging more liquidity, which could support prices.
Bitcoin functions as both a hedge asset and a risk asset, and is currently Nasdaq Composite Index than gold.
Bitcoin rose 6% in September, typically its lowest price month of the year. But Yuya Hasegawa, a cryptocurrency market analyst at Japanese bitcoin exchange Bitbank, said the crisis is not over yet and warned about the outcome of the Bank of Japan’s policy meeting that began on Thursday.
“The Bank of Japan is likely to maintain its policy rate this time, but if there are signs of further rate hikes, [the Japanese yen] “This could lead to an unwinding of the yen carry trade, leading to a sell-off in Japanese stocks and risk-averse sentiment spreading to the cryptocurrency market,” he said. “Bitcoin still has some time before the BOJ makes a decision and could continue to rise during Thursday’s U.S. session. The next short-term target could be around $65,000.”
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