Bitcoin and other cryptocurrencies rise as Fed Chair Powell hints at rate cuts, boosting market optimism.

From Investing.com

August 23, 2024 2:07:42 pm:

Bitcoin and other major cryptocurrencies rallied on Friday after Federal Reserve Chairman Jerome Powell hinted at cutting interest rates in September, boosting market confidence. Bitcoin surged over 1.5% to $61,900, Ethereum rose 2.9% to $2,685, and Litecoin increased by 2.4% to $147. Traditional markets also saw gains with the Nasdaq up 1.7% and gold rising by 1%.

Powell’s speech at the Jackson Hole gathering suggested a more dovish tone, leading to optimism in the markets. Lower interest rates can benefit Bitcoin and other cryptocurrencies, as seen in the inverse relationship between interest rates and crypto prices. Interest rate cuts inject liquidity into the market, favoring riskier assets like Bitcoin.

Crypto-related stocks also performed well with Coinbase increasing by 5% and MicroStrategy Incorporated adding 7%. In the mining sector, Iris Energy and CleanSpark rose by 2% and 4% respectively, while Marathon Digital was up by 6.5% and Riot Platforms gained 3%. Markets are now pricing a quarter-point rate cut at the Fed’s next meeting with a 67.5% chance indicated by the CME FedWatch tool.

Read more at Investing.com: Bitcoin, Polkadot, crypto prices gain as Powell says it’s ‘time for rate cuts’ By Investing.com