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Bitcoin regained $60,000 on Tuesday as investors awaited details of the Federal Reserve’s interest rate cut plan.
The price of the flagship cryptocurrency recently rose 4.3% to $60,394.41, according to Coin Metrics. It rose to $61,335.83 at one point. The stock rose for the first time on Monday night as former President Donald Trump launched his new cryptocurrency venture, World Financial Freedom Coin.
Bitcoin broke through the $60,000 level on Tuesday morning as the Federal Reserve began its two-day policy meeting. The central bank is widely expected to cut interest rates for the first time in four years, which could boost risk assets including Bitcoin.
Philipp Pieper, co-founder of Swarm Markets, said, “As short-term market dynamics disappear, Bitcoin may react with some tightening to the news of the Federal Reserve’s interest rate cut.” “But the long-term impact of loose monetary conditions will help Bitcoin, Ethereum and other markets enter new bull cycle In the past, Bitcoin has had some correlation with major tech indexes like the Nasdaq, and has largely moved in line with currency conditions as investors rallied on lower interest rates. Find benefits in the environment.
The market is divided on whether the Federal Reserve will cut interest rates by 25 basis points or 50 basis points. Currently, traders see a 63% chance of the central bank cutting interest rates by 50 basis points CME Group’s FedWatch Tool. 1 basis point equals 0.01%.
Bitcoin has been trading between $55,000 and $70,000 this year. Investors have been anticipating a rate cut by the Federal Reserve, the growth of Bitcoin ETFs, and the outcome of the U.S. presidential election to be the next catalysts to shake up the cryptocurrency market.
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