Investing.com — Bitcoin prices rose on Wednesday as continued enthusiasm for global monetary easing prompted more flows into risk-driven assets, with the world's largest cryptocurrency now in sight of a major breakout.
A series of stimulus measures from China also helped overall sentiment, while markets positioned for interest rate cuts from the Swiss and Swedish central banks this week, following the Federal Reserve's first rate cut since 2020.
rose 1.9% to $64,253.3 as of 00:47 ET (04:47 GMT).
Bitcoin aims to surpass $65,000
The world's largest cryptocurrency has marked a strong recovery over the past two weeks as risk appetite was mainly boosted by a drastic interest rate cut by the Federal Reserve.
The Fed also announced the start of an easing cycle that is expected to see rates fall by at least 125 basis points by the end of 2024, according to analysts at Citi. Goldman Sachs expects the Fed to cut rates by 25 basis points at each meeting between November and June 2025.
Coindesk reported that Bitcoin needed to sustainably surpass an August high of $65,000 to establish further gains, although the coin has struggled to maintain levels above $65,000 since hitting an all-time 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 behind the stock market rally as Wall Street hit record highs following the Fed's decision.
Sentiment towards cryptocurrencies remained relatively subdued, especially as retail interest waned this year. An uncertain regulatory landscape, amid a tight US presidential race, also limited flows into cryptocurrencies.
Cryptocurrency prices today: Altcoins rise, more signals about rates on the way
Cryptocurrency prices generally rose following Bitcoin, although overall gains were limited.
The world's No. 2 cryptocurrency rose 0.2% to $2,626.93.
and led the gains among altcoins, rising 3.7% and 7% respectively. rose 1%, while up slightly.
Among meme tokens, it rose by 2.3%.
Attention turned to more forward-looking signals on global interest rates in the coming days.
Sweden is expected to cut rates later on Wednesday, while the Bank of Sweden is expected to cut rates on Thursday.
In the United States, the talks will be held on Thursday, while the data – the Fed's preferred inflation indicator – will be released on Friday.
