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Cryptocurrencies 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 5% to $62,417.48, extending a rally that preceded the central bank’s decision, according to Coin Metrics. Like stocks, Bitcoin initially rose and then fell back as traders absorbed the news.
ether It also rose 5%. Its main competitors are Solana The coin gained 7.5%.
Bitcoin rises after Wednesday’s Fed decision
Stocks rise in correlation with Bitcoin price. Bitcoin exchange operator Coin library Advanced 6%. micro strategywidely used as high beta games Bitcoin price rose 9%.
Some investors worry that the Fed could have eased the cut by just a quarter of a percentage point, a sign that policymakers must be more worried about the economy than markets are indicating. Others are more focused on lower borrowing costs, spurring increased liquidity, which could support prices.
Bitcoin behaves as follows Both a hedging asset and a risk assetcurrently with Nasdaq Index than it is gold.
Bitcoin gained 6% in September, typically its worst month of the year. However, Yuya Hasekawa, a cryptocurrency market analyst at Japanese Bitcoin exchange Bitbank, said that it is not out of the woods yet. He warned about the outcome of the Bank of Japan’s policy meeting starting on Thursday.
“The Bank of Japan is likely to keep policy rates on hold this time, but signs of additional rate hikes could boost the yen and could trigger a pullback in yen carry trades, which could lead to a sell-off in Japanese stocks, with the risk that sentiment could spread to crypto. money market,” he said. “Bitcoin still has some time before the Bank of Japan’s decision and could extend its gains during Thursday’s U.S. trading session. The next possible short-term target is around $65,000.”
