By Elsa Ohlen
Cryptocurrencies jumped early Tuesday amid growing bets that the Federal Reserve will begin rate cuts sooner rather than later.
The Fed is in focus this week as Chair Jerome Powell will deliver remarks that’ll be eyed closely by investors at the Jackson Hole symposium on Friday.
Cryptos were tracking gains across more risk-driven markets Tuesday, which usually gather momentum when rate cuts near as they tend to encourage riskier investments, such as cryptos.
The market sees the odds of a 25 basis point cut in September at 75.5%, according to the CME FedWatch Tool. The odds of a 50 basis point cut are at 24.5%.
Bitcoin price moved past the $61 ,000 mark early Tuesday, to later narrow some of those gains to rise 4.52% at $60,752.
Other cryptocurrencies rallied, too. XRP gained 8.3% to $0.15 while Ether, another popular digital asset, rose 3.07% to $2,660. Solana was up 3.78% at $146.5.
The crypto exchange platform Coinbase rose 2.2%, and the Bitcoin proxy MicroStrategy was up 2.5% and Block, the owner of the digital platform Square, rose 0.2% in the premarket Tuesday.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
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