Bitcoin Rebounds From $200 Billion Slump To Reach $67,000

(CTN News) – During the day Thursday, bitcoin hovered around $67,000, as global markets rallied after the Federal Reserve signaled it would cut interest rates this year in the wake of the Fed’s announcement.

According to data from CoinGecko, the digital currency was trading at $66,964.75 around 8:50 a.m. New York Time, up nearly 5% from 24 hours prior, in accordance with the data from CoinGecko.

The price of bitcoin has been very volatile since its all-time high of $73,797.68 came last week, which was a very significant fluctuation in the price of bitcoin.

Bitcoin’s value fell significantly on Wednesday, when it fell below $61,000, increasing the overall loss of its value by around $200 billion as a result of the value of the crypto dropping to below $61,000.

On Wednesday evening, it started to rise again as a result of the policy decisions that have been taken by the Federal Reserve during the last meeting that was held by the Federal Reserve. The U.S. central bank kept interest rates steady and hinted it might cut rates more than once this year if it continues to hold them steady.

Consequently, the global stock market, as well as the cryptocurrency market, rallied as a result. It is generally true that an environment with lower interest rates is a positive one for risk assets, such as bitcoin.

It looks like we are going to consolidate here for a bit, but then even after that we should be able to surge past all-time highs very soon,” says Vijay Ayyar, vice president of international markets and growth at crypto exchange CoinDCX.

Besides bitcoin, other digital coins also benefited from the bitcoin bump, with Ether gaining 11% to around $3,575 at 4:15 a.m. Eastern Time.

SEE ALSO:

Gold Jumps to US$2,200 Per Ounce for the First Time