• Bitcoin’s price has surged 5.6%, hitting a three-week high of $61.1K on Tuesday morning
• Altcoins like Celestia, Immutable X, and Near have seen double-digit percentage gains
• Crypto stocks rose modestly ahead of the Fed’s expected rate cut announcement

Bitcoin’s price has surged to its highest level in three weeks, triggering gains across the cryptocurrency sector and related stocks.

It soared 5.6%, reaching $61.1K before returning to around $61k.

The surge marks a sharp reversal from the quiet start to the week, signalling renewed interest in digital assets.

Altcoins and Bitcoin price soaring ahead of Fed cuts

Besides Bitcoin, other major cryptocurrencies have also seen significant gains, with Ethereum (ETH) advancing 4.2% to $2.38K.

Notably, some altcoins have outpaced the larger tokens. For example, Celestia (TIA) has seen a 15.7% increase, Immutable X (IMX) has risen by 14.8%, Near Protocol (NEAR) is up 9%, Uniswap (UNI) has climbed 8.9%, and Sui (SUI) has gained 8.1%.

The rally comes just ahead of the Federal Reserve’s highly anticipated decision on interest rates.

Market analysts widely expect the central bank to lower rates for the first time in four years. With inflation largely under control and the labour market showing signs of cooling, many believe the Fed will adopt a more accommodative stance.

Lower interest rates are typically bullish for cryptocurrencies, as reduced borrowing costs make traditional savings and investment vehicles less attractive. As a result, investors often turn to riskier assets like cryptocurrencies in search of higher returns.

Crypto-focused stocks also surge

Crypto-focused stocks have also benefited from Bitcoin’s rally, though their gains were generally more modest compared to digital tokens.

MicroStrategy (MSTR), a company known for holding large reserves of Bitcoin, inched up by 0.6%.

Crypto exchange platform Coinbase Global (COIN) has risen by 3%, while crypto investment firm Galaxy Digital (OTCPK) has gained 5.4%.

In the crypto mining sector, Riot Platforms (RIOT) has advanced 2.4%, MARA Holdings (MARA) has risen by 1.9%, and HIVE Digital Technologies (HIVE) has climbed 4.3%. Bit Digital (BTBT) saw the largest jump, gaining 13%, followed by Hut 8 (HUT) with a 6.6% rise, and CleanSpark (CLSK) up 3.1%.

As the broader stock market also experience buying pressure ahead of the Federal Reserve’s pivotal decision, the crypto sector continues to ride the wave of optimism surrounding the potential for lower rates and increased investment in digital assets.

• Bitcoin has broken past $62K post-Fed rate cut; next resistance at $63K
• Ethereum and Solana have also surged, reflecting a broader crypto market rally
• Caution remains due to economic uncertainties and potential regulatory issues

Bitcoin’s (BTC) price has surged past $62,000 following the US Federal Reserve’s decision to cut interest rates by 50 basis points.

The move by the Fed, aimed at bolstering economic growth and mitigating recession risks, has ignited a rally across digital assets. The monetary policy adjustment not only energized Bitcoin but also lifted a broad range of altcoins and risk assets.

The next Bitcoin price resistance level at $63k

Currently trading around $62,096, Bitcoin’s price has demonstrated a solid 24-hour gain of 2.29% and a more impressive 7-day increase of 6.20%.

Most notably, the price breach above the $62,000 mark represents a crucial psychological milestone for Bitcoin, following a period of consolidation near $60,000.

Technical analysis highlights that Bitcoin’s next significant resistance level is positioned at $63,000, with the potential for further gains if this barrier is surpassed. The upper boundary of Bitcoin’s Bollinger Bands indicates heightened volatility, suggesting that while a short-term profit taking phase may occur, the overall trend remains strongly bullish.

Support is firmly established at around $60,100, acting as a critical floor that has been repeatedly tested and held firm.

Investor sentiment towards Bitcoin is largely positive, with increased trading volumes reflecting growing institutional interest.

As Bitcoin’s price continues to climb, it benefits from a broader narrative of cryptocurrencies serving as a hedge against traditional market volatility and inflation fears, which have been exacerbated by the Fed’s dovish stance.

Ethereum and Solana lead as altcoins mirror Bitcoin’s surge

The rate cut by the US Federal Reserve not only impacted Bitcoin’s price but has also spurred a broader rally in the cryptocurrency market, lifting major altcoins alongside Bitcoin.

Ethereum (ETH), for instance, has surged past $2,400, marking a 24-hour increase of 4.94% and a 7-day rise of 2.97%. Ethereum’s price reached $2,430 before settling slightly, mirroring Bitcoin’s bullish trend. Technical indicators show Ethereum facing immediate resistance at $2,430, with potential for further gains if it breaks above this level.

Solana (SOL) has also seen significant price movements, surging by 6.03% to reach $138.65. This gain underscores renewed confidence in Solana’s ecosystem and its applications in decentralized finance (DeFi) and non-fungible tokens (NFTs).

Other altcoins, such as Ripple (XRP) and Shiba Inu (SHIB), have also experienced notable increases, with XRP rising by 1.20% to $0.59 and SHIB climbing 7.85% to $0.00001427.

Analysts remain cautious

Despite the overall positive sentiment, market participants remain cautious. Mixed reactions and concerns about the sustainability of the rally are prevalent. Analysts suggest that while the rate cut has provided a significant short-term boost, the broader economic uncertainties and potential regulatory challenges could impact future performance.

In particular, Presto Research notes that the market remains divided, highlighting the need for relief from growth concerns to maintain upward momentum.

Amid the mixed market outlook, the coming months will be critical in determining whether the current Bitcoin (BTC) price rally can sustain momentum and push digital assets to new highs.

Ethereum (ETH) holders appear to be adopting varying strategies amid ongoing market uncertainty, latest data from CryptoQuant shows.

Particularly, according to a recent analysis by a CryptoQuant analyst under the pseudonym ‘Darkfost,’ a noticeable shift in ETH’s investor behaviour is taking place.

So far, larger holders of Ethereum and smaller retail investors are exhibiting signs of inactivity, while mid-sized holders show a measured increase in their holdings.

This divergence in strategies among these market participants may provide insight into Ethereum’s market sentiment, especially as it faces a decline in dominance, Darkfost revealed.

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Detailing The Holders Divergence

Darkfost points out that Ethereum addresses holding more than 100,000 ETH have been largely inactive. This trend is also visible among retail addresses, which typically accumulate smaller amounts of ETH.

In contrast, addresses holding between 10,000 and 100,000 ETH are slowly buying more Ethereum. At the same time, addresses holding between 100 and 1,000 ETH continue to sell off their holdings steadily.

This diverse behavior among different investor segments suggests a complex market outlook for Ethereum. The inactivity of large holders, those with balances exceeding 100,000 ETH, is notable, given their potential impact on the market.

Usually, large holders include institutional investors, exchanges, and major entities that can significantly influence market trends.

Their current reluctance to engage in either buying or selling suggests uncertainty about Ethereum’s near-term prospects. This hesitation might reflect broader market factors, such as the upcoming US Fed rate cuts or the overall performance of the crypto market.

Notably, with the US fed rate cut approaching, large Ethereum holders might be sitting on their hands to see how the market will play out before they put their feet back in the market.

On the other hand, mid-sized investors, specifically those with 10,000 to 100,000 ETH, are gradually accumulating Ethereum. This slow but steady buying indicates a cautious optimism among this group of investors.

These mid-sized holders often represent smaller institutions, crypto funds, or high-net-worth individuals who may be looking to capitalize on potential price gains without significantly impacting the market.

Their gradual accumulation could signal a belief in Ethereum’s long-term potential, even if immediate gains appear uncertain.

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Ethereum Current Market Performance

Following an initial rally rising by nearly 5% yesterday, Ethereum has now seen a noticeable pullback in price, dropping below $2,400 once again. Currently, the asset trades at a price of $2,299, at the time of writing down by 2.1% over the past day alone.

Interestingly, despite the noticeable decline, ETH’s daily trading volume remains intact, at roughly above $14 billion from yesterday until now.

Featured image created with DALL-E, Chart from TradingView