Bitcoin price surges past $62,000 after Fed's big cut Here's when to expect a new all-time high

The Federal Reserve has announced a 0.5% cut in interest rates. Market watchers believe this is just the beginning of a crypto rally.

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Fed cuts Election uncertainty Crypto market movers What are we studying?

Bitcoin rose to $62,000 after Federal Reserve Chair Jerome Powell announced the central bank would cut interest rates for the first time in four years.

Now, market watchers say the price of the world’s leading cryptocurrency is skyrocketing.

“There’s a significant chance we’ll see a price pump for the rest of the year, pushing bitcoin to another all-time high,” said Alice Liu, principal researcher at CoinMarketCap. News.

Over the past decade, Bitcoin has rallied 90% in the fourth quarter of the year, she said.

Bitcoin smashing through its previous record of $73,000 will lead to the rest of the $2.2 trillion crypto industry. But analysts warn that the uncertainty surrounding the election could still bring the rally to its knees.

Fed cuts

Powell announced on Wednesday that the US central bank will cut interest rates by 0.5%, bringing them to a range between 4.75% and 5%.

“The US economy is in good shape. It is growing at a solid pace. Inflation is coming down,” he said.

The overall crypto market rallied 2% on the news to just over $2.2 trillion. Ethereum rose 5.2% to $2,435. Solana rose 6.4% to $138 in the last 24 hours.

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When interest rates fall, borrowing becomes cheaper, which fuels the economy and pushes investors to buy riskier assets like stocks and crypto.

“Bitcoin liquidity is highly correlated with the environment and this will support higher bitcoin prices through the end of the year and beyond,” said Steven Lubka, Swan Private Head at Swan Bitcoin.

Election uncertainty

Several factors threatened to collapse the rally before it could gain momentum. Among them: the upcoming elections.

The race between former President Donald Trump and Vice President Kamala Harris pits a candidate who has openly supported the industry against someone who has not expressed his views on crypto.

Bernstein analysts predict that Trump’s victory could push bitcoin up to $90,000 this year, while his loss would send the cryptocurrency below $30,000.

“While the election may create regulatory headwinds, monetary policy is providing tailwinds, making bitcoin the most likely winner,” said Greg Magadini, director of derivatives at AmberData.