Crypto Currency News

US-listed Crypto Stocks Jump After Bumper Rate Cut From Fed

U.S.-listed crypto shares jumped on Thursday after a half-percentage point interest rate cut sparked a flight into risky assets, adding to the momentum of an industry that has already secured some big wins this year.

The move could revive interest in bitcoin , the most popular cryptocurrency, which often sways the entire sector as investors chase higher returns and dump safe-havens.

The currency gained 4.5% and last traded at $62,959 on Thursday.

“There’s over $6 trillion in money market funds, soon yielding 50 bps less,” said Matt Mena, crypto research strategist at 21Shares.

“Bitcoin and other digital assets have historically thrived in low-interest-rate environments. This move could signal a return of liquidity, sparking a risk-on sentiment and fueling a sharp rally.”

Crypto miners Riot Platforms (RIOT.O), Marathon Digital (MARA.O), and CleanSpark (CLSK.O), rose 3.2%, 5.4% and 5.6%, respectively.

Cryptocurrency exchange Coinbase Global (COIN.O), jumped 5.7% and software firm MicroStrategy (MSTR.O), one of bitcoin’s biggest corporate backers, gained 7.4%.

Exchange-traded funds tracking the price of bitcoin and peer ether received landmark regulatory approvals earlier this year, boosting investor sentiment.

However, that turned choppy in recent weeks with investors drifting in and out of the sector amid shifting odds of a Republican win in the upcoming presidential election.

Republican candidate Donald Trump has positioned himself as a pro-bitcoin candidate and vowed to fire SEC Chair Gary Gensler – who has been accused of heavy-handed enforcement by the industry – “on day one.

He launched a new crypto venture earlier this week and reportedly paid with bitcoin, for burgers bought for his supporters at a bar in New York on Wednesday.

However, high-profile executives have said that the U.S. will be friendlier towards crypto regardless of who wins the election.

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Arvinth Akash

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Arvinth Akash

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