Bitcoin
and
Ether, the two largest cryptocurrencies by market capitalization,
were thriving on Monday morning,
buoyed by the U.S. Federal Reserve’s recent interest rate cut
. Bitcoin was trading near $63,000, up 1.2% in the past 24 hours and nearly 8% over the week. Ether, meanwhile, was hovering around $2,600, with a 2.5% gain in the last 24 hours and an impressive 15% rise over the week,
according to CoinMarketCap.
The surge follows a pivotal decision by
the Federal Open Market Committee (FOMC) last Wednesday,
when the Fed lowered interest rates by 50 basis points, setting the federal funds target range at 4.75% to 5.00%. This move had an immediate and positive effect on risk assets, with cryptocurrencies leading the charge. The overall crypto market followed suit, with altcoins including Solana (
SOL
), Dogecoin, and Cardano gaining 8.5%, 4.9%, and 5.9%, respectively, over the past week.
However, it was the AI-driven token sector that saw the most dramatic growth.
Tokens such as Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Sui (SUI) surged 25%, 81%, and 38% in a week
, respectively, as investors poured in, eager to capitalize on the momentum sparked by the Fed’s rate cut.
A recovery may be on the way for crypto ETFs
The
spot Bitcoin exchange-traded funds (ETFs
) and the
spot Ether ETFs
have been struggling since September. According to
ETF tracker Farside, while spot Bitcoin ETFs
experienced mixed inflows and outflows in September,
spot Ether ETFs
saw predominantly outflows. However, this trend may shift in the coming days following the Fed’s interest rate cut, potentially encouraging investors to allocate more funds to the crypto ETFs.
For the latest news, Facebook , Twitter and Instagram .