The key event that shook the financial market was the Federal Reserve’s (Fed) cut of the key interest rate by 50 basis points. As is usually the case, such a move sparked interest in riskier financial assets, including cryptocurrencies, reports The Motley Fool. What’s more, cryptocurrencies actually received an endorsement from a prominent politician in the United States.
Which altcoins have risen this week
On Thursday, many altcoins got off to a strong start, posting double-digit gains. Standing out among them were Aptos with a 15% increase in the evening session, Solana, which increased by 11%, and Avalanche with a nearly 14% increase. Meme cryptocurrencies were not left out either, with Pepe up more than 11%.
The Fed rate cut was expected in investment circles, but opinions differed on its size. Many analysts had predicted a more moderate 25 basis point cut, so the regulator’s decision was a pleasant surprise for investors.
Reasons for the growth of altcoins
“Interestingly, a factor not entirely expected was the use of digital currencies by a senior politician. On Wednesday, it was reported that former president and current presidential candidate Donald Trump used bitcoin to make purchases at a bar in New York City,” the article adds.
Nevertheless, the authors express doubts about the longevity of this rally. “Most likely, in the coming days, cryptocurrencies will trade in a sideways trend or decline slightly due to the lack of significant news affecting the market.”
Translated with DeepL.com (free version)
