Bitcoin, the largest cryptocurrency, rallied the sharpest in over a month on Tuesday as speculations grew over the anticipated rate cut by the US Federal Reserve.
Bitcoin soared up to 6.4% to $61,337 in the trading so far, as per the data shared by Bloomberg. This marked the biggest intraday jump in the digital currency's value since Aug. 8.
Apart from Bitcoin, smaller cryptocurrencies including Ethereum, Dogecoin and Solana also gained.
Ethereum was up 3.84%, Solana climbed 2.07%, and Dogecoin was trading 2.265 higher, as per the data available with crypto.com.
The latest Bitcoin rally comes in the backdrop of the cryptocurrency logging a 10% jump in the week ending on Sept. 15.
Analysts attribute the climb in cryptocurrencies to the speculation over a 50 basis points cut in the benchmark lending rates by the Fed. The monetary policy body will announce its decision on rate cuts on Wednesday.
Cryptocurrency traders are “pricing a significantly larger event weight than we have seen in recent times” for the Fed meeting, Bloomberg quoted Orbit Markets Co-Founder Caroline Mauron as saying.
The Fed decision will remain the most significant event to impact the cryptocurrency market in the near term, whereas the focus will shift on the US presidential elections in around a month, analysts say.
Despite its recent jump, Bitcoin is still significantly behind its record price of $73,798 clocked in March. The digital asset's rate was then boosted by a surge in the demand for dedicated US exchange-traded funds. However, the inflows into the funds have since moderated.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
