- The price of Bitcoin rose 5.6%, reaching a three-week high of $61.1 thousand on Tuesday morning.
- Altcoins such as Celestia, Immutable X and Near saw double-digit percentage gains.
- Cryptocurrency stocks rose modestly ahead of the Federal Reserve’s expected rate cut announcement.
The price of Bitcoin rose to its highest level in three weeks, lifting the cryptocurrency sector and related stocks. It rose 5.6% to $61.1K by 11:55 a.m. ET before falling back to about $61K.
The surge marks a sharp reversal from a quiet start to the week, signaling renewed interest in digital assets.
Bitcoin price and cryptocurrency market rise ahead of Fed cuts
Besides Bitcoin, other major cryptocurrencies also saw significant gains, with Ethereum (ETH) up 4.2% to $2.38K.
Notably, some altcoins outperformed larger tokens. For example, Celestia (TIA) is up 15.7%, Immutable X (IMX) is up 14.8%, Near Protocol (NEAR) is up 9%, Uniswap (UNI) is up 8.9%, and Sui (SUI ) added 8.1%.
The rally comes just ahead of the Federal Reserve’s long-awaited interest rate decision.
Market analysts widely expect the central bank to cut rates for the first time in four years. With inflation largely under control and the labor market showing signs of cooling, many believe the Fed will take a more accommodative stance.
Lower interest rates tend to be a boon for cryptocurrencies, as lower borrowing costs make traditional savings and investment vehicles less attractive. As a result, investors often turn to riskier assets such as cryptocurrencies in search of higher returns.
Crypto-focused stocks also rise
Cryptocurrency-focused stocks also benefited from Bitcoin’s rally, although their gains overall were more modest compared to digital tokens.
Shares of MicroStrategy (MSTR), known for its large bitcoin reserves, rose 0.6%.
Cryptocurrency exchange platform Coinbase Global (COIN) rose 3%, while investment firm Galaxy Digital (OTCPK) rose 5.4%.
In the cryptocurrency mining sector, Riot Platforms (RIOT) rose 2.4%, MARA Holdings (MARA) rose 1.9%, and HIVE Digital Technologies (HIVE) rose 4.3%. Bit Digital (BTBT) saw the biggest jump, up 13%, followed by Hut 8 (HUT), up 6.6%, and CleanSpark (CLSK), up 3.1%.
With the broader stock market also experiencing buying pressure ahead of a key Federal Reserve decision, the crypto sector continues to ride a wave of optimism surrounding the potential for rate cuts and increased investment in digital assets.
