Cryptocurrencies surge after Fed cuts, Bitcoin-related stocks climb

Cryptocurrency prices rose as part of a broad market rebound after the Federal Reserve cut interest rates for the first time in more than four years. Bitcoin prices rose 3.5% to $62,417.48 on the day, according to Coin Metrics, after rebounding ahead of the central bank's decision on Wednesday. Bitcoin, like stocks, rose initially but fell back as traders digested the news. Stocks tied to the price of Bitcoin climbed. Bitcoin exchange operator Coinbase rose 5%. MicroStrategy, which is widely used as a high-risk investment tool for Bitcoin prices, rose 5%. Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank, said the Bank of Japan is likely to keep its policy rate unchanged this time tomorrow, but signs of further rate hikes could boost the yen and could trigger a reversal of the yen carry trade, which could lead to a sell-off in Japanese stocks and risk aversion could spread to crypto markets. The next possible short-term target is around $65,000. (Jinshi)