Crypto Prices Surge After Fed Rate Cut
Bitcoin rose above $62,000, buoyed by the U.S. Federal Reserve's 50 basis-point rate cut on Wednesday. Reductions in borrowing costs are traditionally a bullish indicator for risk assets such as cryptocurrencies, and easing cycles have historically coincided with surges in BTC's price to all-time highs. Leading altcoins ETH and SOL also saw significant gains.
Traders Warn of Short-Lived Rally
Despite the positive market reaction to the rate cut, traders are cautioning that the rally could be short-lived. They argue the bigger picture of economic slowdown and geopolitical uncertainty will hold back cryptocurrency price gains in the long run. Presto Research noted the mixed reaction across asset classes, indicating that "growth concerns clearly exist."
Crypto Firms Expand Services
Crypto Finance, a subsidiary of Germany's largest stock exchange operator, signed a deal with Commerzbank to offer trading services to the lender's corporate clients. This comes just two weeks after a similar agreement with Zürcher Kantonalbank in Switzerland. Commerzbank obtained a crypto custody license in Germany in 2023, allowing it to offer a wide range of digital asset services.
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