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US-listed crypto stocks jump after bumper rate cut from Fed
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US-listed crypto stocks jump after bumper rate cut from Fed
Sep 25, 2024 8:37 PM

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.

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