Bitcoin prices surged 5.6% to hit a three-week high of $61,100 on Tuesday morning, with altcoins including Celestia, Immutable X and Near posting double-digit gains. Crypto stocks edged higher ahead of the Federal Reserve's expected interest rate cut announcement.
Bitcoin prices surged to their highest in three weeks, sparking gains across the cryptocurrency sector and related stocks. Prices rose 5.6% to $61,100 by 11:55 a.m. ET before falling back to around $61,000.
The surge marks a sharp reversal from a quiet start to the week and signals renewed interest in the digital asset.
Altcoin and Bitcoin Prices Soar Ahead of Fed Rate Cut
Aside from Bitcoin, other major cryptocurrencies also saw significant gains, with Ethereum (ETH) rising 4.2% to $2.38K.
Notably, some altcoins outperformed larger tokens, for example, Celestia (TIA) increased by 15.7%, Immutable X (IMX) rose by 14.8%, Near Protocol (NEAR) increased by 9%, Uniswap (UNI) increased by 8.9%, and Sui (SUI) increased by 8.1%.
The increase came just before a highly anticipated decision on interest rates by the Federal Reserve.
Market analysts are increasingly expecting the central bank to cut interest rates for the first time in four years, with many betting the Fed will adopt a more accommodative stance with inflation largely under control and the labor market showing signs of cooling.
Falling interest rates are generally bullish for cryptocurrencies as lower borrowing costs make traditional savings and investment vehicles less attractive, which in turn leads investors to turn to riskier assets like cryptocurrencies in search of higher returns.
Cryptocurrency-related stocks also surged
Cryptocurrency-focused stocks have also benefited from Bitcoin's rise, though the gains have been generally more modest than those of other digital tokens.
MicroStrategy (MSTR), a company known for holding large amounts of Bitcoin, rose 0.6%.
Cryptocurrency trading platform Coinbase Global (COIN) rose 3%, while cryptocurrency investment firm Galaxy Digital (OTCPK) rose 5.4%.
In the crypto mining sector, Riot Platforms (RIOT) increased 2.4%, Mara Holdings (MARA) increased 1.9%, and Hive Digital Technologies (HIVE) increased 4.3%. Bit Digital (BTBT) was the biggest gainer with a 13% increase, followed by Hut8 (HUT) and CleanSpark (CLSK) which rose 6.6% and 3.1%, respectively.
As the broader stock market comes under buying pressure ahead of a major Federal Reserve decision, the cryptocurrency sector continues to ride a wave of optimism around the possibility of lower interest rates and increased investment in digital assets.
