Crypto Price Today: Bitcoin surges above $62,100 on Fed rate cut; Avalanche zooms 9%

A 50-bps rate cut by the US Federal Reserve on Wednesday gave a much-needed push to global cryptocurrencies. Bitcoin (BTC) gained nearly 3% around 1:10 pm and was trading at $62,106.92. Major altcoins like Ethereum (ETH), Tether, BNB, Solana, XRP, Toncoin, Shiba Inu, and Cardano rose up to 5%.

BTC’s gains over the last one week have been to the tune of 7%.

Avalanche was the top gainer in the pack and it shot up 9%.


The US Central Bank has also hinted at further cuts this year and there is a view that it could be at least 50 bps.

A further trim in policy rate could aid BTC and other crypto coins.

Source: CoinMarketCap

"In the last 24 hours, the cryptocurrency market has experienced a notable surge, rising by 2.78% to reach a total market capitalisation of $2.15 trillion. This positive momentum coincides with the US Federal Reserve's announcement of a 50 basis point reduction in the benchmark fed funds rate, the first in four years. The news has benefited major cryptocurrencies," Shivam Thakral, CEO of BuyUcoin said.

As interest rates decrease, investor sentiment is expected to improve, potentially driving more capital into the crypto space, he said, adding that if economic conditions improve, future outlook for cryptocurrencies will only get better.

This was the first rate cut undertaken by the Fed since the onset of the COVID-19 pandemic and this decision sparked a rally across markets, with Bitcoin surging back above $62,000, CoinSwitch Markets Desk note said. Lower rates are often viewed as bullish for Bitcoin, as they enable investors to borrow more cheaply to purchase riskier assets like BTC, the note said.

In other news, Solana launched its second mobile device, called Seeker and according to Solana, this is more than just a 'memecoin phone,' hinting at broader functionality and use cases.

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