Bitcoin recorded its greatest intraday acquire in a month on Tuesday as expectations grew that the Federal Reserve could quickly lower rates of interest.

The cryptocurrency surged as a lot as 6.4% to hit $61,337, its greatest acquire since Aug. 8. Different cryptocurrencies together with Ethereum, Dogecoin and Solana additionally noticed upward momentum.

Swaps market pricing signifies the Federal Reserve is anticipated to chop rates of interest by no less than 25 foundation factors at its assembly on Wednesday, with a 55% probability of a 50 foundation level lower. This potential shift in financial coverage has rekindled curiosity in speculative property like Bitcoin.

“I imagine the rising correlation between cryptocurrencies and conventional markets is what's driving Bitcoin's rally proper now,” mentioned Cillian Tan, president of Arbelos Markets. Tan additional famous that MicroStrategy's latest announcement that it might be issuing convertible notes to purchase extra Bitcoin is boosting crypto market sentiment.