Bitcoin rises alongside global markets as rate cut expectations mount

WEB DESK: Cryptocurrencies moved in step with global equities on Thursday, as expectations of imminent US interest rate cuts pushed investors toward risk-sensitive assets. Bitcoin hit a fresh high, reflecting a broader shift in market sentiment.

Bitcoin’s rise aligns with multiple factors: forecasts of lower interest rates, signs of a more permissive regulatory stance, and increasing investment from large institutions. Ether also continued its upward trend, trading near its strongest level since late 2021. Year-to-date, ether has gained 42 per cent, outperforming bitcoin’s 32 per cent rise.

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In Asian equity markets, momentum slowed following several days of gains. Japanese shares declined after reaching record territory earlier in the week. Markets in Taiwan and South Korea also edged lower after recent rallies, particularly in technology sectors.

Investor positioning is being shaped by growing belief that the US Federal Reserve may lower rates as early as next month. Following comments from Treasury Secretary Scott Bessent, some traders are now factoring in the possibility of a 50 basis-point cut.

“If we’d seen those numbers in May or June, I suspect we could have had rate cuts in those months. That tells me there’s a very good chance of a 50 basis-point cut in September,” Bessent told Bloomberg Television.

Attention is also turning to Fed Chair Jerome Powell, who is scheduled to speak at a central bank research event in Wyoming next week. His remarks are expected to influence views on the Fed’s future policy stance.

Elsewhere, Bessent noted that the Bank of Japan may move to raise interest rates to address inflation risks. The yen strengthened, holding near its highest level in three weeks.

Also read: Global shares hit record as rate cut hopes, tame inflation data buoy sentiment

During European trading hours, investors will assess a series of economic releases that may shed light on the effects of recent trade tariffs and broader trends in the regional economy.