Bitcoin surges above $60,000 ahead of Fed decision

Bitcoin reclaimed $60,000 on Tuesday as investors awaited details of the Federal Reserve’s interest rate cut plans.

The cryptocurrency rose 4.3% to $60,394.41, according to Coin Metrics, according to CNBC.

It briefly rose to $61,335.83. It received an initial boost Monday night when former President Donald Trump unveiled his new cryptocurrency project, World Financial Liberty Coin.

Bitcoin also breached $60,000 on Tuesday morning as the Federal Reserve began its two-day policy meeting.

The central bank is widely expected to cut interest rates for the first time in four years, which is likely to boost riskier assets including bitcoin.

Bitcoin “is likely to react to news of a rate cut as short-term market dynamics clear,” said Philip Pepper, co-founder of Swarm Markets.

“But the long-term implications of loose monetary conditions are setting the stage for a new bullish cycle for bitcoin, ether and the rest of the market,” he added.

In the past, bitcoin has been somewhat correlated with major technology indices like the Nasdaq, moving broadly in line with monetary conditions as investors seek yield in low-interest-rate environments.

The market is divided on whether the Fed will cut rates by 25 or 50 basis points. Currently, traders are pricing in a 63% chance that the central bank will cut rates by 50 basis points, according to the CME Group’s FedWatch tool. One basis point equals 0.01%.