Bitcoin (BTC) Price Surges to 3-Week High Ahead of Fed Rate Decision

Bitcoin price has surged to its highest level in three weeks, triggering gains across the cryptocurrency sector and related stocks.

Bitcoin price soared on Friday, triggering gains across the cryptocurrency sector and related stocks.

Cryptocurrency prices today: BTC up 5.6%, ETH rises 4.2%

Bitcoin price surged on Friday, sparking gains across the cryptocurrency sector and related stocks. It soared 5.6%, reaching $61.1K by 11:55 a.m. ET before pulling back to around $61K.

The surge marked a sharp reversal from the quiet start to the week, signalling renewed interest in digital assets.

Other major cryptocurrencies also saw significant gains on Friday. Ethereum advanced 4.2% to $2.38K, while some altcoins outpaced the larger tokens.

Celestia (TIA) saw a 15.7% increase, Immutable X (IMX) rose by 14.8%, Near Protocol (NEAR) was up 9%, Uniswap (UNI) climbed 8.9%, and Sui (SUI) gained 8.1%.

The rally comes just ahead of the Federal Reserve’s highly anticipated decision on interest rates. Market analysts widely expect the central bank to lower rates for the first time in four years.

With inflation largely under control and the labour market showing signs of cooling, many believe the Fed will adopt a more accommodative stance.

Lower interest rates are typically bullish for cryptocurrencies, as reduced borrowing costs make traditional savings and investment vehicles less attractive. As a result, investors often turn to riskier assets like cryptocurrencies in search of higher returns.

Crypto-focused stocks also benefited from Bitcoin’s rally, though their gains were generally more modest compared to digital tokens.

MicroStrategy (MSTR), a company known for holding large reserves of Bitcoin, inched up by 0.6%.

Crypto exchange platform Coinbase Global (COIN) rose by 3%, while crypto investment firm Galaxy Digital (OTCPK) gained 5.4%.

In the crypto mining sector, Riot Platforms (RIOT) advanced 2.4%, MARA Holdings (MARA) rose by 1.9%, and HIVE Digital Technologies (HIVE) climbed 4.3%.

Bit Digital (BTBT) saw the largest jump, gaining 13%, followed by Hut 8 (HUT) with a 6.6% rise and CleanSpark (CLSK) up 3.1%.

As the broader stock market also experienced buying pressure ahead of the Federal Reserve’s pivotal decision, the crypto sector continued to ride the wave of optimism surrounding the potential for lower rates and increased investment in digital assets.