Bitcoin rallies above $40K on Fed rate cut hope
By Laxmikant Khanvilkar
Leading virtual digital assets or VDA have advanced to their fresh year high, before coming off, as market participants turned euphoric over early interest rate cut prospects. In fact, easing inflation pressure is expected to prompt pause in rate hike as well as early rate cuts by global central banks. A lower treasury rate is a bullish factor for Bitcoin (BTC). The largest cryptocurrency by market capitalisation soared to fresh year high, above $42,000 mark.
The world’s largest and oldest cryptocurrency is currently trading at $41,883, up 4.2%.
Ether (ETH) too scaled above $2,3, the level last seen in May 2022. The second largest cryptocurrency by market capitalisation is currently offered at $2,249 up 1.7%.
Bets on lower interest rates, spot bitcoin ETF anticipation and “panic buying” helped the rally, analysts said.
Broader markets have followed BTC and Ether, higher. BNB, ADA, XRP among others were trading in the positive territory.
Broader market gains helped lift global crypto market cap by 2.90% to $1.54 tn, in the last 24-hours. The total crypto market volume surged 112% to $95.8 bn. Total volume in DeFi is currently $10.4 bn and all stablecoins $87.6 bn, representing 10.9% and 91.5% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.9%, up 0.66% over the day.
IC15 index, the barometer of top fifteen tokens, surged 3.3% to 52,188.
Meanwhile, shares of Coinbase and MicroStrategy jumped more than 4% Monday as BTC extended its year-to-date gain to over 150%. Both the companies are consider as proxy bets for the crypto markets.
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