Bitcoin price surged to $61,176.1 due to Fed rate cut expectations, positive for crypto market

From Investing.com

August 20, 2024 01:52 AM:

Bitcoin price surged 4.5% to $61,176.1, driven by expectations of a Federal Reserve rate cut in September. Concerns over Mt Gox distributions eased as positive capital flows were seen in crypto investment products last week, but Bitcoin still struggled to break out of its trading range.

Global risk-on sentiment lifted Bitcoin and crypto markets, with traders anticipating a 25 basis point rate cut in September. All eyes are on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, where he is expected to give encouraging comments on the economy and potential rate cuts.

A strong yen appreciation this week poses risks to crypto markets, as the low interest rates in Japan make the yen attractive for speculative trading. The yen’s sharp increase earlier in August caused crypto prices to plummet, and a repeat of this trend could present challenges for risk-heavy assets like crypto.

Altcoins saw gains alongside Bitcoin, with Ethereum rising 2.2% to $2,681.48 and XRP up 3.7%. Despite heavy selling in investment products, Solana-based decentralized exchange Mango Markets faced SEC violations. Other altcoins like Cardano, Polkadot, and Dogecoin also saw increases, while meme token Shiba Inu rose 4.7%.

Read more at Investing.com: Up to $61k amid rate cut cheer By Investing.com