Bitcoin skyrocketed this week after long awaited Federal Reserve cuts on Wednesday. The largest digital coin is now priced at $63,125 per coin, according to at CoinGecko — up more than 5% over seven days.
The price increase came after Jerome Powell said the central bank would cut interest rates by 50 basis points, while some had expected a more modest 25 basis point cut. The Fed raised interest rates to their highest level in two decades in 2022 in an effort to tame inflation. Investors had been expecting a cut, but were unsure how much it would be.
But after Powell’s announcement, traders rushed to riskier assets like stocks and cryptocurrencies, which typically do better in a low-interest-rate environment.
It should be noted, however, that the largest digital coin still has a way to go before reaching its all-time high price of $73,737 set in March.
The second largest cryptocurrency by market capitalization, Ethereumhas increased by nearly 6% over the past week. The coin has risen despite investors continuing to withdraw their funds Newly Approved Exchange Traded Funds (ETFs).
In other news, Donald Trump has finally spear his crypto project. In a live interview with Rug Radio (Decrypt(Ethereum’s sister company), the Republican presidential candidate and his allies said the decentralized finance (DeFi) project, dubbed World Liberty Financial, would offer cryptocurrency borrowing and lending services on the Ethereum network.
Elsewhere, MicroStrategy continued to buy Bitcoin, addition $458.2 million more in orange coins on its balance sheet, and a judge thrown Ethereum software giant Consensys has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC).
And among the top coins and tokens by market capitalization, Solana continued to climb, adding 8% to its value over the week. The fifth largest coin is now at the price at $147.69, according to CoinGecko.
But Avalanche is this week’s winner, having jumped 11% in seven days, and currently exchanging hands for $27.57.
Edited by Andrew Hayward
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