Bitcoin surged almost 6% to above $61,000 before losing momentum as anticipation builds ahead of the Federal Reserve’s key interest rate decision on Sept. 18. This marks the end of a brief three-day dip, where Bitcoin slid from its recent two-week high before rebounding. The latest rally positions the world’s most valuable crypto back above a crucial psychological level. As of press time, BTC was trading at $60,935, up 5.5% over the past 24 hours, based on CryptoSlate data.
The wider crypto market also showed signs of recovery, adding over $45 billion to its overall value, with Bitcoin and Ethereum leading the rebound. However, the performance of the top 10 cryptocurrencies by market cap has been mixed, indicating cautious sentiment in the market. Ethereum (ETH), the second-largest crypto, saw a 3.5% gain in the last 24 hours, bringing its price to $2,369.38. BNB and Solana (SOL) were up 2.43% and 1.45% over the period to trade at $546 and $132.47 as of press time, respectively. Meanwhile, XRP and Dogecoin (DOGE) were up roughly 2% over the last 24 hours and trading at $0.5857 and $0.1014, respectively, while Avalanche (AVAX) was up 3.43% and trading at $24.2 as of press time.
Bitcoin’s surge coincided with a significant drop in US 10-year Treasury yields, which fell to their lowest level in 15 months. US yields have declined for three consecutive sessions, with speculation mounting about the Federal Reserve’s potential interest rate cut. Lower Treasury yields have historically signaled increased investor appetite for riskier assets, including cryptocurrencies. The Fedwatch tool shows growing confidence in a 0.5% rate cut by the Federal Reserve, with the likelihood of such a move surging to nearly 70%. Meanwhile, a smaller 0.25% cut remains less probable, and market participants expect that the Fed’s decision will signal the start of a new cycle of monetary easing. This could provide additional support for Bitcoin and other digital assets, which often thrive when risk appetite is strong.
At the time of press on Sep. 17, 2024, Bitcoin is ranked #1 by market cap and the price is up 5.51% over the past 24 hours. Bitcoin has a market capitalization of $1.2 trillion with a 24-hour trading volume of $36.11 billion. The total crypto market is valued at $2.1 trillion with a 24-hour volume of $71.98 billion. Bitcoin dominance is currently at 57.25%. The performance of other top cryptocurrencies varied, with some showing gains and others showing slight fluctuations. Overall, the market exhibited a cautious sentiment, with investors closely monitoring the Federal Reserve’s upcoming interest rate decision. As speculation grows about a potential rate cut, lower Treasury yields are signaling increased investor appetite for riskier assets such as cryptocurrencies, which could lead to further support for Bitcoin and other digital assets in the near future.
