Daily Times

Bitcoin broke the $24,000 threshold for the first time in more than a month, as hopes of a rate hike less aggressive than feared from the Federal Reserve triggered a relief rally in cryptocurrencies. The world’s biggest cryptocurrency surged as high as $24,047 Wednesday, up more than 8pc in 24 hours and trading at levels not seen since mid-June, according to Coin Metrics data. Traders took comfort from the prospect of softer policy action from the Fed at its next rate-setting meeting. The effects of tighter monetary policy from the US central bank have weighed heavily on risky assets like stocks and crypto. Bitcoin is still down roughly 50pc since the start of 2021. “This isn’t necessarily the end of the crypto bear market, but a relief rally for Bitcoin is long overdue,” said Antoni Trenchev, CEO of crypto lender Nexo. Meanwhile, traders are betting that the worst of an intense market contagion caused by liquidity issues at some large crypto firms has likely subsided. Elsewhere in crypto, ether climbed nearly 5pc to $1,609.06, while other so-called “altcoins” were also higher. The second-largest token is up more than 50pc in the past seven days, fuelled by optimism over a highly anticipated upgrade to its network known as the “Merge.”