One day after the Fed’s surprise decision to cut rates by 0.5%, risk assets are experiencing strong gains. Among them, stocks linked to the Cryptocurrency sector stand out, reporting significant green numbers.
For investors and enthusiasts, the deep rate cut has a particularly positive meaning. Beyond its magnitude, the cut would have had the same effect even if it had been 25 basis points. This is what experts quoted by Reuters think. For them, what is really important is that the hawkish phase of the Federal Reserve is over.
Now, with a new era of monetary policy in place, equities have every opportunity to head higher. “There are over $6 trillion in money market funds, which will soon yield 50 basis points less,” Matt Mena, cryptocurrency research strategist at 21Shares, told the media outlet.
In simple words, this whole environment translates into a context that stimulates the appetite for risk among capitals. This is evident during Thursday’s trading session on the stock market. In this sense, stocks related to cryptocurrencies are going through a remarkably positive moment.
Cryptocurrency stocks are gaining momentum on Thursday. Source: Yahoo Finance
Cryptocurrency stocks in the green this Thursday
The 50 basis point interest rate cut means the return of liquidity to financial markets. On the stock market, assets linked directly or indirectly to Bitcoin are experiencing a particular rally. Considering the current environment, it is to be expected that the optimistic sentiment will continue in the short term.
In any case, shares of firms such as MicroStrategy, Coinbase and Bitcoin miners remain on an upward trend. At the time of writing, Yahoo Finance data reveals that MicroStrategy shares are up 11.49%, increasing their price to $148.16 per share.
Meanwhile, Coinbase shares, another benchmark in the crypto sector on the stock exchange, are up 6.28%. Its price per unit is $172.77. The main digital Mining companies listed on the stock exchange are experiencing a similar situation. Riot Platforms, CleanSpark and Marathon Holding are up 2.58%, 7.58% and 5.22% in the same order.
On the other hand, cryptocurrency spot ETF stocks are also experiencing positive numbers. Thus, shares of BlackRock’s BTC ETF, IBIT, are up by +6.03%. Meanwhile, during the trading session on Wednesday, flows into these ETFs as a whole were negative, with outflows of $52.7 million, according to Farside.
The trend of inflows into BTC and ETH spot ETFs is expected to change to positive for Thursday and Friday.
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