Bitcoin rebounds above $43,000 after Fed hints at interest rate cut — altcoins and crypto asset-related stocks soar | CoinDesk JAPAN

Bitcoin (BTC) fell to $43,000 (approximately 6.02 million yen, 140 yen to the dollar) on the 13th for the first time since the flash crash on the 11th, after the Federal Reserve (Federal Reserve) hinted at interest rate cuts next year. It rebounds until it exceeds (conversion). Stock prices of companies specializing in the crypto asset (virtual currency) market and digital assets also rose accordingly.

Lowered interest rate forecast for the end of 2024

On the 13th, the Federal Reserve left the federal funds rate unchanged at 5.25% to 5.5% after the December Federal Open Market Committee (FOMC) meeting, but expects the rate to be lowered to 4.6% by the end of 2024. , suggesting that there will be around three cuts of 25 basis points.

Bond yields and the U.S. dollar index fell sharply following the Fed’s dovish outlook, supporting a broad rally in risk assets including stocks and crypto assets.

Bitcoin rose above $43,000 in the afternoon, marking a nearly 5% rise on the day from below $41,000.

Altcoins soar

Among the major crypto assets, Avalanche (AVAX), Cardano (ADA), and Injective (INJ) recorded gains of nearly 10%. The CoinDesk Smart Contract Platform Index (SMT) was CoinDesk’s best performing sector.

CoinDesk Market Index sector performance (CoinDesk)

The CoinDesk Market Index (CMI), which measures the performance of the entire crypto asset market, rose 3.8% in the past 24 hours.

Cryptocurrency-related stocks also soared. Crypto exchange Coinbase rose nearly 8%, while Michael Saylor’s MicroStrategy rose 5%.

U.S.-listed Bitcoin mining companies Marathon Digital, Riot Platforms and CleanSpark rose between 8% and 16% on the day.

Analysts at crypto exchange Bitfinex said on the 12th, “Historically, interest rate deferrals or reductions signal the potential for increased disposable income and increased investment in various asset classes.” “This impact is not limited to traditional markets, but also extends to new assets such as crypto assets.”

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Bitcoin Bounces Over $43K, Altcoins, Crypto Stocks Burst Higher as Fed Projects Rate Cuts Next Year