- Bitcoin’s price surged 5.6% to hit a three-week high of $61.1K Tuesday morning.
- Altcoins such as Celestia, Immutable X, and Near have seen double-digit percentage gains.
- Cryptocurrency stocks rose slightly ahead of the Federal Reserve’s expected interest rate cut announcement.
Bitcoin’s price surge to its highest level in three weeks has sparked a rally across the cryptocurrency sector and related stocks.
It surged 5.6% to $611,000 before falling back to the $61,000 range.
The surge marks a sharp reversal from a quiet start to the week, signaling renewed interest in digital assets.
Altcoin and Bitcoin Prices Surge Ahead of Fed Rate Cut
Aside from Bitcoin, other major cryptocurrencies also saw significant gains, with Ethereum (ETH) up 4.2% to trade at $2,380.
In particular, some altcoins are outperforming the 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) is up 8.1%.
The rally comes ahead of the Federal Reserve’s 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 adopt a more accommodative stance.
Low interest rates are generally bullish for cryptocurrencies, as traditional savings and investment vehicles become less attractive as borrowing costs decrease. As a result, investors often turn to riskier assets like cryptocurrencies in search of higher returns.
Cryptocurrency-focused stocks also surge
Crypto-focused stocks also benefited from the Bitcoin rally, but overall gains were smaller compared to digital tokens.
MicroStrategy (MSTR), a company known for holding large amounts of Bitcoin, rose 0.6%.
Cryptocurrency trading platform Coinbase Global (COIN) rose 3%, while cryptocurrency investment firm Galaxy Digital (OTCPK) gained 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) was the biggest gainer, up 13%, followed by Hut 8 (HUT) up 6.6% and CleanSpark (CLSK) up 3.1%.
As buying pressure builds across the stock market ahead of a key Federal Reserve decision, the crypto space continues to ride the wave of optimism surrounding rate cuts and the potential for increased investment in digital assets.