Bitcoin hit a three-week high as US stock futures surged following the Federal Reserve’s decision to cut interest rates aggressively, which in turn was reflected in the markets.
The cryptocurrency rose more than 5% today to $63,518 at 10:33 a.m. New York time. S&P 500 futures and Asian stocks also rose as traders adjusted their expectations for the start of the expected monetary easing cycle by the Fed.
The US central bank cut borrowing costs by 50 basis points, the first cut in more than four years. However, Federal Reserve Chairman Jerome Powell was cautious about committing to a similar pace of cuts in the future, stressing that any future steps would be based on economic data. This cautious approach calmed the reactions in US markets during trading hours on Wednesday.
“The strong start to the monetary easing cycle is good news for riskier assets like Bitcoin,” said Caroline Moron, co-founder of Orbit Markets, a liquidity provider for crypto derivatives. “It took the market a few hours to digest the full picture and act on the improved expectations.”
