Bitcoin Price Climbs Toward $61,000 After Fed Cuts Interest Rates
Bitcoin rose Wednesday after the Federal Reserve's interest-rate announcement, with the U.S. central bank cutting its benchmark interest rate for the first time in years.
The Fed cut rates by half a percentage point in a bid to help prevent a labor market slowdown.Investors broadly expected a rate cut, though some expected a smaller cut of 25 basis points. Further cuts are expected through the end of the year, according to the CME Group's FedWatch Tool.
The news supported cryptocurrency prices, with bitcoin recently near $61,000 and ether above $2,300. Crypto asset prices tend to rise on signs of monetary easing, as they are broadly seen as risk-on assets even as some investors tout their use as safe havens.
Shares of crypto exchange Coinbase Global (COIN) were recently up more than 2%, while MicroStrategy (MSTR) was ahead more than 5%.
After briefly rising above $70,000 in July, bitcoin has struggled to stay above $60,000 over the past couple of months.
