Sept 19 (Askume) – U.S.-listed cryptocurrency stocks rose on Thursday as a half-percentage-point cut in interest rates boosted risk appetite, adding momentum to an industry that has already scored some big wins this year.
The move could revive interest in bitcoin, the most popular cryptocurrency, which has battered the industry as investors abandon safer bets in search of higher returns.
The currency gained 4.6% on Thursday and last traded at $62,991.
“The returns on the $6 trillion-plus money market funds will soon drop to 50 basis points,” said Matt Manna, cryptocurrency research strategist at 21Shares.
“This move could signal a return of liquidity, reducing risk aversion and fueling stronger bullish sentiment.”
Shares of MicroStrategy (MSTR.O), one of bitcoin’s biggest corporate backers, rose nearly 10%. Cryptocurrency exchange Coinbase Global(COIN.O) rose 6.4%.
Digital asset miners Riot Platform (RIOT.O) , Marathon Digital (MARA.O) and Cleanspark (CLSK.O) rose 1.6%, 4% and 5.3%, respectively.
“The rate cut is aggressive, but more important than its effect is the signal it sends. It could mean that aggressive monetary policy will be over for some time,” said Henry Robinson, co-founder of cryptocurrency mining company Decimal Digital Money.
Exchange-traded funds tracking the price of Bitcoin and Ethereum received landmark regulatory approvals earlier this year, boosting investor sentiment.
However, it has been volatile in recent weeks due to the changing circumstances surrounding the upcoming US presidential election .
Republican nominee Donald Trump has pitched himself as a pro-bitcoin candidate and vowed “from day one” to fire US Securities and Exchange Commission Chair Gary Gensler — whom the industry accuses of being tough on enforcement.
He launched a new cryptocurrency venture earlier this week and reportedly paid in bitcoin for burgers bought by supporters at a New York bar on Wednesday.
But industry executives say the US will remain crypto-friendly no matter who wins the election .
