Summary:
Bitcoin jumped 5.6% to $61.1K, marking a three-week high.
Ether saw a 4.2% increase to $2.38K.
Notable crypto gainers include Celestia (+15.7%) and Immutable X (+14.8%).
Federal Reserve expected to lower rates for the first time in four years, boosting crypto appeal.
Crypto-focused stocks like MicroStrategy and Coinbase also reported gains.
Bitcoin (BTC-USD) has surged to its highest level in three weeks, driving significant gains in related stocks. In late morning trading on Tuesday, Bitcoin jumped 5.6% to $61.1K. Similarly, Ether (ETH-USD) advanced 4.2% to $2.38K.
Crypto Market Performance
Among the notable gainers in the crypto market:
- Celestia (TIA-USD): +15.7%
- Immutable X (IMX-USD): +14.8%
- Near (NEAR-USD): +9%
- Uniswap (UNI-USD): +8.9%
- Sui (SUI-USD): +8.1%
Federal Reserve Impact
This rise in token prices comes just ahead of the Federal Reserve's expected decision to lower rates for the first time in four years. The current economic conditions, with inflation largely contained and a cooling labor market, suggest that lower borrowing costs could enhance the appeal of cryptocurrencies.
Lower rates typically push investors towards riskier assets like cryptocurrencies, as traditional savings and investment vehicles become less attractive.
Stock Performance
Shares of crypto-focused firms are also in the green:
- MicroStrategy (MSTR): +0.6%
- Coinbase (COIN): +3%
- Galaxy Digital (OTCPK:BRPHF): +5.4%
- Riot Platforms (RIOT): +2.4%
- MARA Holdings (MARA): +1.9%
- HIVE Digital (HIVE): +4.3%
- Bit Digital (BTBT): +13%
- Hut 8 (HUT): +6.6%
- CleanSpark (CLSK): +3.1%
Market Sentiment
The broader stock market is also experiencing buying pressure as investors anticipate the Fed's decision, with all three major indices seeing increased activity.
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