The cryptocurrency market has shown significant growth following the recent interest rate cut by the United States Federal Reserve (Fed).
Bitcoin and Altcoins Growth
Bitcoin surged above the key resistance level of $63,000 for the first time since August 27. Other significant gainers among smaller altcoins included Reef, which soared to $0.0048, and First Neiro on ETH, which hit a record high of $0.00098. Solar (SXP) and Billy (BILLY) also saw substantial gains.
Impact of Fed Rate Cut
The Fed reduced its interest rate by 0.50%, aligning with analysts' expectations. The Fed also hinted at further cuts if the labor market continues to weaken. This reduction has had a positive effect on both the crypto and traditional stock markets.
Analyst Comments
Many crypto analysts believe that the ongoing rally has legs. For example, Ki Young Ju stated that the crypto bull run is still underway and that institutional investors are no longer shorting Bitcoin. Consequently, Bitcoin ETFs have seen inflows for five consecutive days, indicating institutional buying.
The cryptocurrency market continues to grow on the back of the Fed's rate cut and positive investor sentiment. Further strength in altcoins may continue if the current trend persists.
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