Sept 19 (Reuters) - U.S.-listed crypto shares jumped
before the open on Thursday after a half-percentage point
interest rate cut sparked a flight into risky assets, adding to
the momentum of an industry that has already secured some big
wins this year.
The move could revive interest in bitcoin, the most
popular cryptocurrency, which often sways the entire sector as
investors chase higher returns and dump safe-havens.
The currency gained 4% and was last trading at $63,177 on
Thursday.
"There's over $6 trillion in money market funds, soon
yielding 50 bps less," said Matt Mena, crypto research
strategist at 21Shares.
"Bitcoin and other digital assets have historically thrived
in low-interest-rate environments. This move could signal a
return of liquidity, sparking a risk-on sentiment and fueling a
sharp rally."
Crypto miners Riot Platforms ( RIOT ), Marathon Digital
and CleanSpark ( CLSK ) rose 5%, 5.8% and 6.1%,
respectively.
Cryptocurrency exchange Coinbase Global ( COIN ) jumped 4%
and software firm MicroStrategy ( MSTR ), one of bitcoin's
biggest corporate backers, gained 5%.
Exchange-traded funds tracking the price of bitcoin and
peer ether received landmark regulatory approvals earlier
this year, boosting investor sentiment.
However, that turned
choppy in recent weeks with investors drifting in and out of
the sector amid shifting odds of a Republican win in the
upcoming presidential election.
Republican candidate Donald Trump has positioned himself as
a pro-bitcoin candidate and vowed to fire SEC Chair Gary Gensler
- who has been accused of heavy-handed enforcement by the
industry - "on day one."
He launched a new crypto venture earlier this week and
reportedly paid with bitcoin for burgers bought for his
supporters at a bar in New York on Wednesday.
However, high-profile executives have said that the U.S.
will be friendlier towards crypto regardless of who wins the
election.