After weeks of waiting, the US Federal Reserve finally cut key interest rates by 0.5%, sparking a massive rally in Bitcoin that took it to a three-week peak of over $62,600.
Some altcoins have performed even better, receiving huge gains from the likes of BCH, NEAR, AVAX, SUI, TAO and many others.
Bitcoin’s Fed-Driven Rise
This long-awaited week began with a drop in Bitcoin prices that took it from over $60,000 to under $58,000 on Monday. This comes after a significant price surge at the end of the previous week, with BTC approaching $61,000 for the first time in weeks.
However, the cryptocurrency did not stay low for long on Monday and soared above $61,000 on Tuesday as the excitement over the Fed’s action grew. After the US central bank meeting ended and Jerome Powell announced a 50 basis point rate cut, BTC went on quite a roller coaster ride.
It rose and fell several times from over $61,000 to $59,000 before the bulls took full control of the market and began a massive rally that saw the asset jump to $62,650 this morning, its highest price since August 27th.
Despite some loss of ground since then, BTC is still close to $62,000 and up 3% on the day. Its market capitalization exceeds $1.220 trillion and its dominance over alternative currencies is 54.7% on CG.
Alternative options with higher profits
The increasingly volatile altcoin sector has seen a truly powerful rise in prices over the past day. Ethereum has gained over 5% in value and is now well above $2,400, SOL is up 6% and is approaching $140, and SHIB, LINK, APT DOGE and TON are up somewhere between 5-8%.
In addition, Bitcoin Cash, NEAR, SUI, TAO, STX, FET and several others showed double-digit growth.
Many small-cap alternatives such as POPCAT, SEI, TIA and WIF also rose by double digits, helping the overall cryptocurrency market cap add about $100 billion per day. The CG figure is now $2.240 trillion.
