Bitcoin has continued to stay on the path towards its all-time high as the sentiment across the broader crypto market remained bullish following the United States Federal Reserve’s historic interest rate cut, its first in over four years.
Most of the top 100 altcoins remained in the green, with TAO, POPCAT, and AR posting double-digit gains in the past 24 hours.
After starting the day above $62.5k, BTC quickly managed to hit an intra-day high of $64,687, a price level not seen since late August.
The leading catalyst that fuelled the rise of Satoshi Nakamoto’s brainchild was the US Federal Reserve’s 50 basis point interest rate cut, which is typically a positive for risk assets like Bitcoin.
Since the rate cut on September 18, the flagship crypto has managed to hold above the $62k support level.
Further cementing its place above this mark was an uptick in inflows into BTC-based investment products last week.
According to CoinShares, these investment products saw $284 million in liquidity flowing in, leading to a 9% surge in total assets under management for crypto exchange-traded products which now stands at approximately $85.8 billion.
Adding to the positive market sentiment, Forward Guidance Podcast host Fejau spotlighted the Chicago Fed’s National Financial Conditions Index (NFCI), which tracks liquidity, credit availability, and market risks.
Fejau explained that the NFCI was at its loosest level since 2021, standing at -0.56, highlighting that such conditions, marked by abundant liquidity, have typically supported risk assets like Bitcoin, driving its rise.
However, despite the strong optimism, several analysts on X expect BTC to retest the support level of around $62,500, before more upside.
At the time of writing Bitcoin’s Fear & Greed index had recovered from last week’s Fear level of 39 to a neutral 50, indicating improved market sentiment.
The overall cryptocurrency market cap had also gone up to over $2.3 trillion from last week’s low of $2.1 trillion.
BTC was exchanging hands at $63,527, up 1.3% in the past 24 hours, and was down just over 13% from its all-time high of $73,737.94 recorded earlier this year.
The top three altcoins that benefited from the market optimism are as follows:
Bittensor
Bittensor (TAO) recorded the highest gains among the top 100 altcoins, after a 19.3% price rally over the past day alone and over 86% in the past week. At press time, TAO was trading at $541 and boasted a market capitalization just shy of $4 billion.
Source: Coinmarketcap
TAO, alongside other AI-related tokens, enjoyed strong upward moves fuelled by a partnership between AI chip giant Nvidia and Alibaba Cloud that seeks to improve China’s autonomous driving industry.
As evident from historical data, AI-focused crypto tokens usually experience price gains following major announcements from Nvidia.
Popcat
Popcat (POPCAT), a Solana-based memecoin, also recorded an impressive run making it to the second rank among the top gainers of the day.
Popcat has surged by 18% in the past 24 hours, capitalizing on the bullish sentiment across the crypto market following the Fed’s rate cut.
Source: Coinmarketcap
At press time, Popcat was trading at $0.9794, continuing its impressive rally with a 43% surge over the past seven days.
Its market capitalization has now climbed to $959.1 million with a daily trading volume of $126.6 million signaling growing enthusiasm from investors.
Areweave
Areweave (AR) followed closely with a 16.5% hike in its price over the past 24 hours.
The decentralized data storage platform uses a unique blockchain-like structure called the “blockweave,” where miners are incentivized to store data indefinitely.
Source: Coinmarketcap
The sentiment among analysts on X was extremely bullish for the token with multiple analysts expecting further upside for the token over the coming weeks as it broke out of a falling wedge pattern.
Top Losers
Monero (XMR) led the pack with a modest 2.1% drop over the last day. It saw a daily trading volume of approximately $50.3 million, with its market capitalization at $3.19 billion.
Recently, the privacy-centric coin has encountered difficulties, primarily due to several exchanges removing its token from their listings amid heightened regulatory oversight.
Meanwhile, Cosmos Hub (ATOM) and Fantom (FTM) fared slightly better, hovering near the break-even point with both recording just a 0.7% dip at press time, almost inching into the green.
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