Bitcoin’s price surges to USD62,000 following Fed’s indication of rate cuts
Date
8/25/2024 4:55:23 AM
(MENAFN) On Friday, the price of Bitcoin surged to USD62,000, marking a significant rise following comments from US Federal Reserve Chair Jerome Powell. Powell's indication that an interest rate cut might be on the horizon at the Fed’s upcoming meeting in September was a key factor driving the cryptocurrency's increase. Bitcoin's price peaked at USD62,276 after Powell’s highly anticipated address at the Jackson Hole symposium, held in Wyoming. By 12:30 p.m. EDT (1630 GMT), Bitcoin was trading around USD61,500, reflecting a daily gain of 1.6 percent.
Ethereum, the leading Altcoin by market capitalization, also experienced gains on the day, trading at USD2,670 with a daily increase of 2.2 percent. The overall value of the cryptocurrency market rose to USD2.18 trillion, an increase of 1.94 percent for the day, as tracked by CoinMarketCap. Bitcoin’s dominance in the market stood at 55.7 percent, while Ethereum held a 14.7 percent share. Additionally, some altcoins saw remarkable gains of up to 18 percent.
Powell’s speech revealed his growing confidence that inflation is moving towards a sustainable 2 percent target. He stated that the "time has come" for an adjustment in monetary policy, though the exact timing and pace of any interest rate cuts will be contingent on forthcoming macroeconomic data and the evolving economic landscape. This news provided a boost to the cryptocurrency market, which had been under pressure earlier in the month.
Cryptocurrencies experienced a sharp downturn at the start of August due to widespread recession fears that impacted global markets. Bitcoin's value fell to as low as USD49,551 on August 5, reflecting the broader market turmoil. The recent uptick in Bitcoin's price signals a rebound in the market's confidence following Powell’s remarks and the anticipated shift in monetary policy.
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