Why Bitcoin and the crypto market rallied after Fed Chair's speech

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Cryptocurrencies,Interestrate,Fed

Bitcoin (BTC) has gained nearly 5% alongside a rally across the crypto market in the past 24 hours following indications of interest rate cut from Federal Reserve (Fed) Chair Jerome Powell's keynote on Friday morning.

Bitcoin surged above 5% in the past 24 hours after Fed Chair signaled that a rate cut is imminent. Cryptocurrency prices often perform better during lower interest rates environment. The general crypto market rallied, with several cryptocurrencies in key categories posting sizable gains. The rising stablecoin market cap indicates stronger buying pressure.

The crypto bull cycle from 2020 to 2021 also paints a similar picture. After the Fed slashed rates to 0% - 0.25% following the pandemic, Bitcoin began staging a bull run, rising more than 1,000% within a year. However, the market started retracing in 2022 when the central bank began hiking rates again.

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Fed Chair Powell checks the box, and our rate sensitive stocks react accordinglyEvery weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
منبع: CNBC - 🏆 12. / 72 ادامه مطلب »