Bitcoin reached an intraday peak of $63,227 on Thursday, following the U.S. Federal Reserve’s decision to lower the benchmark interest rate by 50 basis points the previous day. The entire cryptocurrency market has gained over 5%, and in the past 24 hours, global trading volume jumped by 26.92%.
Crypto Market Surges 5%, Stocks Rise, Gold and Silver Jump Following Fed Decision
On Sept. 19, the total value of the crypto market hit $2.17 trillion, a 5.1% rise from the previous day. Bitcoin climbed from a low of $59,212 to a peak of $63,227, and as of 9:17 a.m. Thursday, the top cryptocurrency is priced at $63,102 per coin. Over the past 24 hours, bitcoin has gained more than 5%, with an 8.3% increase over the last week. Currently, BTC’s market cap stands at $1.24 trillion, representing 57% of the entire crypto economy.
Data from cryptoquant.com shows a recent premium emerging on U.S. exchange Coinbase, while the premium on South Korean platforms like Upbit and Bithumb has eased to around 1%. With bitcoin’s recent climb, a total of $201 million in derivatives positions have been liquidated, including $146.71 million in short positions. Of those, BTC short positions accounted for $69.47 million in liquidations.
The market’s upward trend is largely credited to the U.S. Federal Reserve slashing the federal funds rate by 50 basis points on Wednesday. This marked the first rate cut since March 2020, and the larger-than-expected reduction has fueled speculation that an easing cycle is underway, which many believe could boost economic growth. Meanwhile, the Bank of England kept its interest rate steady at 5%, as anticipated.
Bitcoin’s latest climb shows how changes in the broader economy, like interest rate cuts, can send ripples through various markets, triggering both price hikes and liquidations. On Thursday, U.S. stock futures edged up as traders processed the Federal Reserve’s Wednesday announcement. Meanwhile, gold gained close to a percentage point, and silver made an even bigger leap, soaring over 3% by Thursday morning (ET). By 9:50 a.m. ET, bitcoin (BTC) was trading just under the $63,000 range.
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