Bitcoin Surges to $63,882 Post-Federal Reserve Rate Cut, Hits Highest Since August 2024

  • Bitcoin shows substantial growth as the U.S. Federal Reserve’s recent rate cut impacts the market.
  • Significant movements also observed in centralized exchange reserves of bitcoin and ethereum.
  • Insights indicate bitcoin’s intraday peak and comparisons with ethereum’s market status.

Bitcoin surges after the Fed’s rate cut; what does this mean for crypto traders?

Bitcoin Hits New Highs Amid Federal Reserve Rate Cut

This week has seen significant activity in the cryptocurrency market, particularly for bitcoin, following the U.S. Federal Reserve’s decision to cut interest rates on Wednesday. Bitcoin reached an intraday peak of $63,882, the highest it has been since August 26, 2024. Over the past month, bitcoin has demonstrated strong performance, appreciating by 7.8%, which remarkably surpasses the 3.5% gain observed in gold. This positive trend underscores bitcoin’s increasing appeal as a digital asset and a potential store of value.

Reduced Bitcoin Supply on Centralized Exchanges

According to data from cryptoquant.com, there has been a considerable decrease in bitcoin held on centralized exchanges. On August 19, 2.68 million bitcoins were stored on these platforms; however, this figure has now reduced by 100,250 BTC to 2.58 million, a level not observed since early November 2018. This reduction implies decreasing selling pressure and suggests growing scarcity of bitcoin in the market. The lower availability on exchanges indicates a potential for continued price increases as demand outstrips supply.

Ethereum Holdings and Market Dynamics

While bitcoin supply on exchanges has dwindled, there has been a slight increase in ethereum (ETH) holdings since August 19, 2024. The amount of ETH has risen from 18.79 million to the current 18.86 million. Despite this increase, the reserves of ethereum on centralized exchanges are depleting rapidly, echoing levels not experienced since July 2016. This adjustment translates to approximately $44.48 billion worth of ethereum. In comparative terms, centralized exchanges currently hold $163.84 billion in bitcoin, covering 13.11% of its market cap. Ethereum held by these exchanges represents 15.03% of its total market valuation.

Conclusion

The latest trends in the cryptocurrency market highlight significant movements following the U.S. Federal Reserve’s rate cut. Bitcoin’s impressive performance and the decreasing supply on centralized exchanges point towards its potential for future price increases. Similarly, while ethereum shows an increase in holdings, its rapid depletion on exchanges signifies growing market dynamics and investor interest. As these trends evolve, traders and investors must stay informed to navigate the complex and fast-paced crypto landscape effectively.

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Source: https://en.coinotag.com/bitcoin-surges-to-63882-post-federal-reserve-rate-cut-hits-highest-since-august-2024/