Investing.com-- Bitcoin’s price rose on Wednesday as persistent cheer over global monetary easing spurred more flows into risk-driven assets, with the world’s biggest cryptocurrency now in sight of a major breakout.
A barrage of stimulus measures from China also aided overall sentiment, while markets positioned for interest rate cuts by Swiss and Swedish central banks this week, following the Federal Reserve’s first rate cut since 2020.
Bitcoin rose 1.9% to $64,253.3 by 00:47 ET (04:47 GMT).
Bitcoin eyes breakout above $65k
The world’s biggest cryptocurrency marked a strong recovery over the past two weeks, as risk appetite was aided chiefly by a bumper interest rate cut by the Fed.
The Fed also announced the start of an easing cycle that is expected to see rates fall by at least 125 basis points by end-2024, according to Citi analysts. Goldman Sachs expects the Fed to cut rates by 25 bps at each meeting between November and June 2025.
Coindesk reported that Bitcoin needed to break sustainably above an August high of $65,000 to set up further gains, although the currency has struggled to maintain any levels above $65,000 since hitting a record high in March.
Still, lower interest rates are expected to spur more flows into risk-driven, speculative assets such as cryptocurrencies in the coming months.
But Bitcoin has largely lagged a rally in stock markets, as Wall Street hit record highs following the Fed’s decision.
Sentiment towards crypto still remained relatively subdued, especially as retail interest waned this year. An uncertain regulatory outlook, in the face of a tight U.S. presidential race, also limited flows into crypto.
Crypto price today: altcoins edge higher, more rate cues on tap
Broader cryptocurrency prices rose tracking Bitcoin, although overall gains were limited.
World no.2 crypto Ether rose 0.2% to $2,626.93.
SOL and ADA led gains among altcoins, rising 3.7% and 7%, respectively. XRP rose 1%, while MATIC inched higher.
Among meme tokens, DOGE rose 2.3%.
Focus was on more upcoming cues on global interest rates in the coming days.
Sweden’s Riskbank is widely expected to cut rates later on Wednesday, while the Swiss National Bank is expected to trim rates on Thursday.
In the U.S., Fed Chair Jerome Powell is set to talk on Thursday, while PCE price index data- the Fed’s preferred inflation gauge- is due on Friday.