The post Bitcoin Price Hits $62,000 Amid Interest Rate Cuts – Best Cryptos to Buy Now appeared first on Coinpedia Fintech News
The U.S. Federal Reserve (Fed) has acted aggressively, cutting its benchmark interest rate by 50 basis points amid signs of lowering inflation.
Bitcoin reacted positively to the news, with a 3% rally in the past 24 hours.
Bitcoin Rises As Traders Bet On Strong Economy
It’s the first time the Fed has lowered its interest rates since the Covid pandemic.
Analysts were split on whether the Fed would opt for a more conservative 25 basis point cut or a 50-point cut. The latter may better stimulate the economy at the risk of causing concern about a potential recession.
However, Bitcoin’s positive price action shows that traders are optimistic.
Currently, BTC is trading at $62.1K.
X commentator The Kobeissi Letter underscores that opening 50-point rate cuts have historically preceded bearish market performances.
However, the commentator also underscores that the Fed “say the economy is strong and they are calling for a soft landing.”
Currently, the main concern is the U.S. weakening labor data, which some market participants fear could be an early sign of a looming recession.
However, Fed Chair Jerome Powell addressed this in the FOMC review following the rate cut decision.
“We will do everything we can to support a strong labor market as we make further progress toward price stability. With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2 percent inflation while maintaining a strong labor market,” he said.
As analyst Kaduna highlighted, “Rate cuts are bullish if recession can be avoided. If a recession can be delayed to late 2025, that would perfectly align with the BTC 4-year cycle.”
He also notes that there is just an 8% chance of a recession in 2024, indicating the market is in a favorable position for gains.
What Cryptos Are a Buy On Fed Rate Cut Decision?
The market’s positive reaction to the rate cuts aligns with the forthcoming Q4, which is typically crypto’s most bullish quarter. As such, here are the best three cryptos to buy now.
Pepe Unchained
Pepe Unchained is a meme coin with its own Ethereum layer 2 blockchain. The ‘Pepe Chain’ will be cheaper and 100x faster than Ethereum.
Currently, Pepe Unchained is undergoing a presale, which has raised a whopping $13.7 million so far. It’s worth noting that this comes at a time when crypto prices have performed poorly, signalling $PEPU could explode in bullish market conditions.
The presale raise shows traders’ unwavering interest in the project, illustrating strong demand that could lead to price growth.
Pepe Chain will be the first Pepe-themed blockchain, and it’ll house meme coins and meme coin-related apps under one roof.
The project will also offer features like staking, a block explorer, and a dedicated Ethereum bridge.
Staking is live and currently provides a 151% APY.
Currently, the Pepe Unchained presale price is $0.0098. However, this will rise throughout the campaign, with the next increase in ten hours.
Polygon
On layer 2s, Polygon (formerly Matic) pioneered the way last cycle. The project was one of the first layer 2 blockchains on the market and saw gains of up to 150x in one year.
At its peak, Polygon was one of the most prominent and popular cryptocurrencies. But price-wise, it now sits outside the top 30.
Nevertheless, the team has kept building and creating new technology. Polygon no longer aims to be an Ethereum layer 2 but a separate blockchain ecosystem that can integrate with Ethereum.
One of its major innovations is zkEVM, a ‘zero-knowledge’ Ethereum layer 2 blockchain, which is decentralized, fast, and secure.
The project recently launched ‘Polygon 2.0,’ a set of new proposals that aim to radically improve the ecosystem, ranging from tokenomics to governance.
Currently, Polygon is trading at $0.3947, up 3% today and 4% this week.
Bittensor
Bittensor has been a top performer on the Fed interest rate cut news. This is likely because it’s a leading AI project, and traders are expecting a strong surge in ‘AI coin’ prices when the market regains pace.
However, that’s not the only thing drawing attention to AI coins, specifically Bittensor.
A bombshell announcement has just been made that BlackRock and Microsoft will launch a $30 billion joint AI fund.
Crypto analysts, such as Wathcher Guru, have picked up on this, indicating that the market also sees this as a positive for AI cryptocurrencies.
It’s also worth noting that AI coins were some of the best performers in crypto’s last bullish phase, Q1 2024.
Bittensor is building a decentralized network for training and running AI models. It also has unique features, such as inference, which bolsters the collective intelligence of all models on its network.
Currently, TAO is trading at $365.75, up 5% today, 11% this week, and 28% this month.
