Sept 19 (Reuters) – U.S.-listed crypto shares jumped on Thursday after a half-percentage point interest rate cut boosted risk appetite, adding to the momentum of an industry that has already secured some big wins this year.
The move could revive interest in bitcoin , the most popular cryptocurrency, which often sways the entire sector as investors chase higher returns and dump safe-havens.
The currency gained 4.6% and last traded at $62,991 on Thursday.
“There’s over $6 trillion in money market funds, soon yielding 50 bps less,” said Matt Mena, crypto research strategist at 21Shares.
“This move could signal a return of liquidity, sparking a risk-on sentiment and fueling a sharp rally.”
MicroStrategy (MSTR.O), opens new tab, one of bitcoin’s biggest corporate backers, gained nearly 10%. Crypto exchange Coinbase Global (COIN.O), opens new tab jumped 6.4%.
Digital asset miners Riot Platforms (RIOT.O), opens new tab, Marathon Digital (MARA.O), opens new tab and CleanSpark (CLSK.O), opens new tab rose 1.6%, 4% and 5.3%, respectively.
“The cut is aggressive, but more important than its impact is what it signals. This could mean the end of hawkish monetary policy for some time,” said Henry Robinson, co-founder of crypto mining firm Decimal Digital Currency.
Exchange-traded funds tracking the price of bitcoin and peer ether received landmark regulatory approvals earlier this year, boosting investor sentiment.
However, that turned choppy in recent weeks amid shifting odds in the upcoming U.S. presidential election.
Republican candidate Donald Trump has positioned himself as a pro-bitcoin candidate and vowed to fire SEC Chair Gary Gensler – who has been accused of heavy-handed enforcement by the industry – “on day one.”
He launched a new crypto venture earlier this week and reportedly paid with bitcoin, opens new tab for burgers bought for his supporters at a bar in New York on Wednesday.
But industry executives have said that the U.S. will be friendlier towards crypto regardless of who wins the election.
https://www.reuters.com/
Source:
ghanaiantimes.com.gh
Source link
