Crypto Prices Surge as Bitcoin Tops $62,100 Following Fed Rate Cut; Avalanche Rises 9%
Bitcoin (BTC) surged past $62,100 on Wednesday, driven by the U.S. Federal Reserve's decision to cut interest rates by 50 basis points. The rate reduction, the Fed’s first in four years, has provided a significant boost to global cryptocurrencies. As of 1:10 pm, Bitcoin was trading at $62,106.92, reflecting a nearly 3% increase.
The broader cryptocurrency market experienced a notable rise, with the total market capitalization climbing by 2.78% to $2.15 trillion. Major altcoins also saw gains, with Ethereum (ETH), Tether, BNB, Solana, XRP, Toncoin, Shiba Inu, and Cardano appreciating by up to 5%.
Shivam Thakral, CEO of BuyUcoin, attributed the market's positive momentum to the Fed's rate cut, stating, "The reduction in the benchmark fed funds rate has given a significant boost to major cryptocurrencies. As interest rates decline, investor sentiment is expected to improve, potentially driving more capital into the crypto space. If economic conditions continue to improve, the future outlook for cryptocurrencies could become even more favorable."
The Fed's decision to lower rates, the first since the onset of the COVID-19 pandemic, has triggered a market rally. Lower interest rates are generally seen as beneficial for Bitcoin, as they reduce borrowing costs and encourage investment in riskier assets such as BTC.
In related news, Solana has unveiled its second mobile device, named Seeker. Unlike typical 'memecoin phones,' Solana's Seeker is touted to offer broader functionality and utility, hinting at its potential beyond mere cryptocurrency transactions.
