Bitcoin climbs above $62,000 after Fed rate cut

BITCOIN'S price climbed more than 3% overnight, pushing the market leader past $62,000 following the Federal Reserve’s first rate cut in four years.

While cryptocurrency markets reacted positively, with most digital assets gaining, US stocks have moved in the opposite direction, with the SP500 edging into the red this morning.

Some analysts point out that stocks have historically responded negatively to aggressive rate cuts, often seen as a signal of a looming recession, though that doesn’t seem to be the concern this time. 

The broader crypto market cap rose by more than 3% in the past 24 hours, with the Fear and Greed Index shifting to 'Neutral' after weeks in 'Fear'.

The key question now is sustainability. Will this optimism last? Some market watchers say opinions remain split on the Fed’s bold move, which could fuel continued volatility.

Looking ahead, there’s speculation among analysts that increased liquidity in the global economy could spark a lasting rally in risk-on assets, including crypto.

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In the Markets

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Total crypto market cap

$2.15 trillion (+3.14%)

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What Bitcoin did yesterday

Daily high $61,757 |  Daily low $59,210

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Bitcoin market capitalisation

$1.23 trillion (58.34% of market)

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Bitcoin 24-hour trading volume

$46.8 billion (+19.4%)

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SP500

-0.29%

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Fear and Greed Index

49 (Neutral) 

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The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

Bitcoin Relative Strength Index (RSI)

54

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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